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The Ticket Fairy is tech’s best hope against Ticketmaster – TechCrunch

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Ticketmaster’s dominance has led to ridiculous service fees, scalpers galore and exclusive contracts that exploit venues and artists. The moronic approval of venue operator and artist management giant Live Nation’s merger with Ticketmaster in 2010 produced an anti-competitive juggernaut. It pressures venues to sign ticketing contracts under veiled threat that artists would otherwise be routed to different concert halls. Now it’s become difficult for venues, artists and fans to avoid Ticketmaster, which charges fees as high as 50% that many see as a ripoff.

The Ticket Fairy wants to wrestle away from Ticketmaster control of venues while giving fans ways to earn tickets for referring their friends. The startup is doing that by offering the most technologically advanced ticketing platform that not only handles sales and check-ins, but acts as a full-stack Salesforce for concerts that can analyze buyers and run ad campaigns while thwarting scalpers. Co-founder Ritesh Patel says The Ticket Fairy has increased revenue for event organizers by 15% to 25% during its private beta focused on dance music festivals.

Now after 850,000 tickets sold, it’s officially launching its ticketing suite and actively poaching venues from Eventbrite as it moves deeper into esports and conventions. With a little more scale, it will be ready to challenge Ticketmaster for lucrative clients.

Ritesh’s combination of product and engineering skills, rapid progress and charismatic passion for live events after throwing 400 of his own has attracted an impressive cadre of angel investors. They’ve delivered a $2.5 million seed round for Ticket Fairy, adding to its $485,000 pre-seed from angels like Twitch/Atrium founder Justin Kan, Twitch COO Kevin Lin and Reddit CEO Steve Huffman.

The new round includes YouTube founder Steve Chen, former Kleiner Perkins partner (and Mark’s sister) Arielle Zuckerberg and funds like 500 Startups, ex-Uber angels Fantastic Ventures, G2 Ventures, Tempo Ventures and WeFunder. It’s also scored music industry angels like Serato DJ hardware CEO AJ Bertenshaw, Spotify’s head of label licensing Niklas Lundberg, and celebrity lawyer Ken Hertz, who reps Will Smith and Gwen Stefani.

“The purpose of starting The Ticket Fairy was not to be another Eventbrite, but to reduce the risk of the person running the event so they can be profitable. We’re not just another shopping cart,” Patel says. The Ticket Fairy charges a comparable rate to Eventbrite’s $1.59 + 3.5% per ticket plus payment processing that brings it closer to 6%, but Patel insists it offers far stronger functionality.

Constantly clad in his golden disco hoodie over a Ticket Fairy t-shirt, Patel lives his product, spending late nights dancing and taking feedback at the events his clients host. He’s been a savior of SXSW the past two years, injecting the aging festival that shuts down at 2am with multi-night after-hours raves. Featuring top DJs like Pretty Lights in creative locations cab drivers don’t believe are real, The Ticket Fairy’s parties have won the hearts of music industry folks.

The Ticket Fairy co-founders. Center and inset left: Ritesh Patel. Inset right: Jigar Patel

Now the Y Combinator startup hopes its ticketing platform will do the same thanks to a slew of savvy features:

  • Earn A Ticket – The Ticket Fairy supercharges word of mouth marketing with a referral system that lets fans get a rebate or full-free ticket if they get enough friends to buy a ticket. Indeed, 30% of ticket buyers are now sharing a Ticket Fairy referral link, and Patel says the return on investment is $30 in revenue for each $1 paid out in rewards, with 10% to 25% of all ticket sales coming from referrals. A public leaderboard further encourages referrals, with those at the top eligible for backstage passes, free merch and bar tabs. And to prevent mass spamming, only buyers, partners and street teamers get a referral code.
  • Creative Payment Options – The startup offers “FreeFund” tickets for free events that otherwise see huge no-show rates. Users pay a small deposit that’s refunded when they scan their ticket for entry, discouraging RSVPs from those who won’t come. Buyers can also pay on layaway with Affirm or LayBuy and then earn a ticket before their debt is due.
  • Anti-Scalping – The Ticket Fairy offers identity-locked tickets that must be presented with the buyer’s ID on arrival, which means customers can’t scalp them. Instead, the startup offers a waitlist for sold-out events, and buyers can sell their tickets back to the company, which then redistributes them to a specific friend or whoever’s at the top of the waitlist at face value with a new QR code. Patel says client SunAndBass Festival hasn’t had a scalped ticket in five years of working with the ticketer.
  • Clever Analytics – Never wasting an opportunity, The Ticket Fairy lets events collect contact info and demand before ticket sales start with its pre-registration system. It can create multiple variants of ticketing sites designed for different demographics, like rock versus dance fans for a festival, track sales and demographics in real time and relay instant stats about check-ins at the door. Integration of email managers like Mailchimp and sales pixels like Facebook plus the ability to instantly retarget people who abandoned their shopping via Facebook Custom Audience ads makes marketing easier. And all the metrics, budgets and expenses are automatically organized into financial reports to eliminate spreadsheet busywork.

Still, the biggest barrier to adoption remains the long exclusive contracts Ticketmaster and other giants like AEG coerce venues into in the U.S. Abroad, venues typically work with multiple ticket promoters who sell from the same pool, which is why 80% of The Ticket Fairy’s business is international right now. In the U.S., ticketing is often handled by a single company, except for the 8% of tickets artists can sell however they want. That’s why The Ticket Fairy has focused on signing up non-traditional venues for festivals, trade convention halls, newly built esports arenas, as well as concert halls.

“Coming from the event promotion background, we understand the risk event organizers take in creating these experiences,” The Ticket Fairy’s co-founder and Ritesh’s brother Jigar Patel explains. “The odds of breaking even are poor and many are unable to overcome those challenges, but it is sheer passion that keeps them going in the face of financial uncertainty and multi-year losses.” As competitors’ contracts expire, The Ticket Fairy hopes to swoop in by dangling its sales-boosting tech. “We get locked out of certain things because people are locked in a contract, not because they don’t want to use our system.”

The live music industry can be brutal, though. Events can have slim margins, organizers are loathe to change their process and it’s a sales-heavy process convincing them to try new software. But while the record business has been redefined by streaming, ticketing looks a lot like it did a decade ago. That makes it ripe for disruption.

“The events industry is more important than ever, with artists making the bulk of their income from touring instead of record sales, and demand from fans for live experiences is increasing at a global level,” Jigar concludes. “When events go out of business, everybody loses, including artists and fans. Everything we do at The Ticket Fairy has that firmly in mind – we are here to keep the ecosystem alive.”

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Proxyclick visitor management system adapts to COVID as employee check-in platform – TechCrunch

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Proxyclick began life by providing an easy way to manage visitors in your building with an iPad-based check-in system. As the pandemic has taken hold, however, customer requirements have changed, and Proxyclick is changing with them. Today the company announced Proxyclick Flow, a new system designed to check in employees during the time of COVID.

“Basically when COVID hit our customers told us that actually our employees are the new visitors. So what you used to ask your visitors, you are now asking your employees — the usual probing question, but also when are you coming and so forth. So we evolved the offering into a wider platform,” Proxyclick co-founder and CEO Gregory Blondeau explained.

That means instead of managing a steady flow of visitors — although it can still do that — the company is focusing on the needs of customers who want to open their offices on a limited basis during the pandemic, based on local regulations. To help adapt the platform for this purpose, the company developed the Proovr smartphone app, which employees can use to check in prior to going to the office, complete a health checklist, see who else will be in the office and make sure the building isn’t over capacity.

When the employee arrives at the office, they get a temperature check, and then can use the QR code issued by the Proovr app to enter the building via Proxyclick’s check-in system or whatever system they have in place. Beyond the mobile app, the company has designed the system to work with a number of adjacent building management and security systems so that customers can use it in conjunction with existing tooling.

They also beefed up the workflow engine that companies can adapt based on their own unique entrance and exit requirements. The COVID workflow is simply one of those workflows, but Blondeau recognizes not everyone will want to use the exact one they have provided out of the box, so they designed a flexible system.

“So the challenge was technical on one side to integrate all the systems, and afterwards to group workflows on the employee’s smartphone, so that each organization can define its own workflow and present it on the smartphone,” Blondeau said.

Once in the building, the systems registers your presence and the information remains on the system for two weeks for contact tracing purposes should there be an exposure to COVID. You check out when you leave the building, but if you forget, it automatically checks you out at midnight.

The company was founded in 2010 and has raised $19.6 million. The most recent raise was a $18.5 million Series B in January.

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Lime touts a 2020 turnaround and 2021 profitability – TechCrunch

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Micromobility company Lime says it has moved beyond the financial hardship caused by the COVID-19 pandemic, reaching a milestone that seemed unthinkable earlier this year.

In short, the company is now largely profitable.

Lime said it was both operating cash flow positive and free cash flow positive in the third quarter — a first — and is on pace to be full-year profitable, excluding certain costs (EBIT), in 2021.

During the WSJ Future of Everything event Thursday, Lime CEO Wayne Ting painted a far rosier picture of the company’s future than one might have expected.

There was a time when Bird and Lime, competing domestic scooter rental companies, were raising capital at a torrid pace, fighting for market share, regulatory breathing room and sidewalk real estate. Then, the pandemic hit and the companies had to take shelter.

Lime underwent a round of layoffs in April, taking on capital from Uber the next month in a down-round that brought its valuation under the $1 billion mark. As it announced in a blog post that TechCrunch reviewed before publication, it paused most of its operations for a month during the early COVID-19 days.

“It was certainly a very, very tough decision for us earlier this year and I know we weren’t the only company during COVID,” Ting said during the event.I think it’s been in so many ways helpful to us to realize how hard these choices can be. We’re going to be growing headcount again. We’re going to do so in a careful way so that we’re not going have to make hard choices like the ones we made earlier this year.”

Now things are better, Lime says. Much better. Indeed, the company claims that it is the “first new mobility company to reach cash-flow positive for a full quarter.”

Cash flow positivity, in general, is an important threshold for a startup to reach as it implies that the company can largely self-fund from that point forward, limiting its dependency on external cash for survival.

Lime also claims that it “reached EBIT positive at the company level over the summer.” The specifics of the phrase “EBIT positive” are important. Was the company employing strict EBIT on its math and not discounting share-based compensation, or was it measuring using adjusted EBIT as many startups do, removing the cost of share-based compensation that shows up in GAAP results? According to the company the number did exclude share-based compensation, making the news slightly smaller.

Perhaps the most bullish data point from Lime is that it expects to be full-year profitable in 2021. TechCrunch asked for specifics because again how one measures profitability matters. It turns out, Lime is basing this projection on EBIT, as opposed to more traditional net income. For a startup this is not a surprising decision, but before we declare Lime fully “profitable,” we’ll want some more GAAP metrics.

Still, it appears that Lime is not going to die, and is, importantly, putting capital into developing new products. The company provided the first example of that new product pipeline on Thursday with the launch of the Gen4 scooter in Paris. It also teased a so-called “third and fourth mode” in the first quarter of 2021 as well as the addition of a swappable battery.

The scooter company wouldn’t give TechCrunch much information about what these third and fourth modes will be. The first two modes are bikes and scooters, which leaves skateboards, cars, flying cars and boats?

Lime did give TechCrunch a little bit of clarification, stating that “move beyond,” means the company will be operating an additional mode, accessed through the Lime app, in line with its goal to serve any trips under five miles. These modes will build on the Lime Platform play, but this will be operated by Lime rather than a partner.

Lime has long discussed reaching profitability. Perhaps because it and its competitor Bird were infamous for their losses during their early unicorn period.

By November of 2019, Lime was talking about reaching EBIT positivity in 2020. But the start of 2020 was not kind on the company, with 100 of its staff losing their jobs and 12 markets getting dropped. At the time TechCrunch wrote that “Lime is hoping to achieve profitability this year by laying off about 14% of its workforce and ceasing operations in 12 markets,” with the company itself writing at the time that “financial independence [was its] goal for 2020, and [that it was] confident that Lime will be the first next-generation mobility company to reach profitability.”

Depending on how you measure profitability, that could be true.

Things didn’t get easier for Lime later in the year. Its competitor Bird underwent layoffs, and Lime cut more staff in April. At the time, Lime said that it was focused on coming “back stronger than ever when this is over.”

The company is certainly in better shape than it was in April and May. So, how did Lime come back from the brink? In its own estimation, the company took time during its pause to “drill down on getting the business right, narrowing [its] focus and strengthening [its] fundamentals.” That might sound like corporate babble, but by taking a nearly full stop in its operating business, Lime could probably see a bit more clearly what was working and what was not. And with some cuts to what wasn’t, it could set up a future in which its operations were leaner, and more unit-economically positive.

And, now, here we are asking niggling questions about just what sort of profit Lime is really making. Instead of, you know, who might buy its leftover office furniture. It’s a nice turnaround.

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Verizon partners with Apple to launch 5G Fleet Swap – TechCrunch

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Apple and Verizon today announced a new partnership that will make it easier for their business partners to go all-in on 5G. Fleet Swap, as the program is called, allows businesses to trade in their entire fleet of smartphones — no matter whether they are currently a Verizon customer or not — and move to the iPhone 12 with no upfront cost and either zero cost (for the iPhone 12 mini) or a low monthly cost.

(Disclaimer: Verizon is TechCrunch’s corporate parent. The company has zero input into our editorial decisions.)

In addition, Verizon also today announced its first two major indoor 5G ultra wideband services for its enterprise customers. General Motors and Honeywell are the first customers here, with General Motors enabling the technology at its Detroit-Hamtramck Assembly Center, the company’s all-electric vehicle plant. To some degree, this goes to show how carriers are positioning 5G ultra wideband as more of an enterprise feature than the lower-bandwidth versions of 5G.

“I think about how 5G [ultra wide band] is really filling a need for capacity and for capability. It’s built for industrial commercial use cases. It’s built on millimeter wave spectrum and it’s really built for enterprise,” Verizon Business CEO Tami Erwin told me.

It’s important to note that these two projects are not private 5G networks. Verizon is also in that business and plans to launch those more broadly in the future.

“No matter where you are on your digital transformation journey, the ability to put the power of 5G Ultra Wideband in all of your employees’ hands right now with a powerful iPhone 12 model, the best smartphone for business, is not just an investment for growth, it’s what will set a business’s future trajectory as technology continues to advance,” Erwin said in today’s announcement.

As for 5G Fleet Swap, the idea here is obviously to get more businesses on Verizon’s 5G network and, for Apple, to quickly get more iPhone 12s into the enterprise. Apple clearly believes that 5G can provide some benefits to enterprises — and maybe more so than to consumers — thanks to its low latency for AR applications, for example.

“The iPhone 12 lineup is the best for business, with an all-new design, advanced 5G experience, industry-leading security and A14 Bionic, the fastest chip ever in a smartphone,” said Susan Prescott, Apple’s vice president of Markets, Apps and Services. “Paired with Verizon’s 5G Ultra Wideband going indoors and 5G Fleet Swap, an all-new device offer for enterprise, it’s now easier than ever for businesses to build transformational mobile apps that take advantage of the powerful iPhone 12 lineup and 5G.”

In addition, the company is highlighting the iPhone’s secure enclave as a major security benefit for enterprises. And while other handset manufacturers launch devices that are specifically meant to be rugged, Apple argues that its devices are already rugged enough by design and that there’s a big third-party ecosystem to ruggedize its devices.

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