PromoTix

PromoTix

Open  for investment

About this raise

PromoTix, with a valuation of $15 million, is raising funds on Wefunder. The company has developed a ticketing platform for in-person and live-streamed events. PromoTix manages event marketing, ticketing, and live streaming without the high fees of Ticketmaster and Eventbrite and has advanced marketing tools for event creators. The platform has 676,495 users and has generated $46.1 million in GMV in the first 29 months, with gross margins of over 82%. William Royall founded PromoTix in December 2019. The current crowdfunding campaign has a minimum target of $75,000 and a maximum target of $1.24 million. The campaign proceeds will be used for sales and marketing, new feature platform development, and client retention and expansion.

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Investment Overview

Committed this round: $103,633

Deal Terms

Total Commitments ($USD)

Platform
Wefunder
Start Date
06/18/2024
Close Date
04/06/2025
Min. Goal
$75,000
Max Goal
$1,235,000
Min. Investment

$100

Security Type

SAFE

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$13,500,000

Valuation Cap

$15,000,000

Discount

10%

Company & Team

Company

Year Founded
2019
Industry
Media, Entertainment & Publishing
Tech Sector
CommerceTech
Distribution Model
B2B
Margin
High
Capital Intensity
Low
Location
Christiansted, California
Business Type
High Growth
Company Website
Visit Website

Team

Employees
13
Prior Founder Exits?
Yes
Founder Name
William Royall
Title
CEO and Chairman

Financials

as of Fiscal Year 2023
 Revenue +160% YoY
$693,244
 Monthly Burn
$14,611
 Runway
6.2 months

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$693,244

$265,798

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-175,330

$-656,566

Summary Balance Sheet

FY 2023 FY 2022

Cash

$66,572

$46,304

Accounts Receivable

$0

$0

Total Assets

$228,120

$53,285

Short-Term Debt

$178,808

$13,106

Long-Term Debt

$2,012,380

$1,828,118

Total Liabilities

$2,191,188

$1,841,224

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Synopsis

PromoTix is a company operating in the media, entertainment, and publishing industry. It provides a ticketing platform for both in-person and live-streamed events. The platform aims to streamline event marketing, ticketing, and live streaming while eliminating the high fees typically associated with other ticketing services like Ticketmaster and Eventbrite. PromoTix offers advanced marketing tools designed to support event creators in managing and promoting their events more effectively. The primary customers of PromoTix include event organizers, venue owners, and promoters who seek a cost-effective solution for event management and ticketing.

The problem PromoTix addresses is the high cost and complexity associated with traditional event ticketing and marketing platforms. Event organizers often face substantial service fees, fragmented marketing tools, and inefficiencies in managing ticket sales and event promotion. These challenges can significantly impact the profitability and success of events.

PromoTix's solution is an integrated platform that combines event marketing, ticketing, and live streaming without the high service fees. The platform is designed to be user-friendly, allowing event organizers to set up and start selling tickets in under five minutes. PromoTix also provides advanced marketing tools that help event creators reach a broader audience and manage their events more efficiently. With over 676k users and $46.1 million in gross merchandise value (GMV) generated in the first 29 months, PromoTix demonstrates significant traction and acceptance in the market.

In everyday scenarios, event organizers often struggle with the high costs and complexity of managing ticket sales through traditional platforms. For example, a music festival organizer might face hefty service fees from established ticketing services, reducing their overall profit margins. Additionally, they may need to use multiple tools for marketing, ticketing, and live streaming, leading to inefficiencies and increased workload. PromoTix addresses these issues by offering a single platform that reduces service fees and integrates all necessary tools, making it easier and more cost-effective for organizers to manage their events. This approach not only simplifies the process but also enhances the profitability and success of events.

Next Section: Price

Price

PromoTix is raising funds through a Simple Agreement for Future Equity (SAFE) with a valuation cap of $15 million. This SAFE includes a 10% discount, providing early investors with a price advantage when the investment converts to equity in a future priced round. The valuation cap sets a ceiling on the maximum valuation at which the current investment will convert into equity, offering some protection against excessive dilution in later funding rounds.

Next Section: Market

Market

The global online event ticketing market, valued at approximately $55.4 billion, is projected to grow at an annual rate of 6.0%. Several key market drivers and trends are influencing this growth trajectory, presenting both opportunities and challenges for PromoTix.

One significant market driver is the increased adoption of the internet and the rising popularity of mobile applications for online ticket booking. This trend simplifies the ticket purchasing process, allowing customers to buy tickets conveniently from their smartphones or tablets. The growing penetration of internet-enabled devices globally provides a broad potential user base for PromoTix’s platform.

The rising disposable income, especially in emerging markets, is another positive trend. As consumers have more discretionary income, spending on entertainment and leisure activities, including movies, concerts, sports events, and live shows, is expected to increase. This trend can positively impact PromoTix by expanding the market for event ticketing.

Technological advancements play a pivotal role in shaping the market dynamics. The use of digital projection and satellite delivery allows exhibitors to offer diverse programming options, including live sports, concerts, and other special events. The integration of features such as RFID tags and smart cards for ticketless entry and cashless transactions enhances the customer experience, making event attendance more seamless and appealing.

PromoTix targets a broad segment within this market, appealing to a wide range of event organizers and attendees. The platform’s ability to manage event marketing, ticketing, and live streaming without high service fees makes it attractive to event creators looking for cost-effective solutions. PromoTix’s focus on reducing service fees and integrating advanced marketing tools sets it apart by addressing specific pain points faced by event organizers.

However, the market is highly competitive, with established players like Ticketmaster, Eventbrite, and StubHub holding significant market shares. PromoTix must navigate this competitive landscape by continuously innovating and enhancing its platform to capture and retain a substantial user base.

Overall, the market for online event ticketing offers substantial growth opportunities, driven by technological advancements, increasing internet penetration, and rising consumer spending on entertainment. PromoTix is well-positioned to capitalize on these trends, but must effectively differentiate itself and execute its growth strategies to achieve long-term success.

Next Section: Team

Team

PromoTix is led by a team with significant experience in event management, technology, and business development, positioning the company well to achieve its goals of providing a cost-effective and comprehensive event ticketing platform.

William Royall, the CEO of PromoTix, brings over 11 years of relevant industry experience. He has successfully scaled multiple startups to over $10 million in sales within the first two years of their inception and has led companies to over $60 million in sales. William has had three successful company exits, including two as a founder. His extensive experience in scaling businesses and driving sales growth is crucial for PromoTix as it seeks to expand its user base and market presence.

Sebastian Schulze, serving as the COO, has been instrumental in onboarding more than 22.8k event creators onto the PromoTix platform within the first 24 months. He manages the client success team, focusing on combating user churn and organizing product feature requests into the development pipeline. Sebastian’s expertise in client management and product development aligns well with PromoTix’s goals of enhancing user experience and retaining customers.

Sean Cullinan, the CTO, has a strong background in software development and has founded multiple software companies. As the chief technical officer of US Viking, Sean developed the Associated Press's ENPS, the largest TV newsroom software system in the world. His technical expertise is vital for maintaining and improving the PromoTix platform, ensuring it remains competitive and user-friendly.

The skills and experience of the key team members align closely with PromoTix’s objectives of scaling the platform, enhancing user experience, and expanding market presence. William Royall’s experience in scaling startups and driving sales growth is particularly relevant as PromoTix seeks to increase its user base and revenue. Sebastian Schulze’s focus on client success and product development supports the company’s goal of retaining users and continuously improving the platform. Sean Cullinan’s technical expertise ensures that PromoTix can maintain a robust and innovative platform that meets the needs of event organizers.

However, there may be gaps in areas such as marketing and business development, which are critical for scaling the platform and achieving market penetration. Addressing these gaps by bringing in additional expertise in these areas could be vital for PromoTix to reach its future milestones and expand its user base effectively.

Next Section: Differentiation

Differentiation

PromoTix operates in a competitive landscape with several established players, including Ticketmaster, Eventbrite, and StubHub. These competitors have significant market presence and resources, making it essential for PromoTix to differentiate itself effectively.

Ticketmaster, a subsidiary of Live Nation Entertainment, is one of the largest players in the event ticketing industry. It offers a comprehensive platform for ticket sales, marketing, and event management. However, Ticketmaster is often criticized for its high service fees, which can be a deterrent for both event organizers and attendees. In contrast, PromoTix aims to provide a more cost-effective solution by eliminating these high fees, making it an attractive alternative for cost-conscious event creators.

Eventbrite is another major competitor, known for its user-friendly platform that caters to a wide range of events, from small community gatherings to large-scale festivals. Eventbrite offers robust marketing tools and analytics, but it also charges service fees that can add up, especially for larger events. PromoTix differentiates itself by integrating advanced marketing tools directly into its platform and offering a more economical pricing structure, potentially providing better value for event organizers.

StubHub, primarily known for its secondary ticket marketplace, also competes in the primary ticketing market. StubHub's platform is well-regarded for its extensive reach and user base. However, like Ticketmaster and Eventbrite, it also imposes significant service fees. PromoTix's focus on reducing these fees while providing comprehensive event management tools positions it as a more affordable option for event organizers.

PromoTix targets a diverse demographic of customers, primarily event organizers, venue owners, and promoters. These customers range from small-scale community event planners to large-scale festival organizers. The platform's user-friendly interface and comprehensive suite of tools make it accessible and appealing to both novice and experienced event creators. Additionally, PromoTix's ability to handle both in-person and live-streamed events broadens its appeal to a wide range of event types and sizes.

By focusing on reducing service fees and offering integrated marketing tools, PromoTix aims to address specific pain points faced by event organizers. This differentiation is crucial in a market dominated by established players with significant resources. PromoTix's strategy of providing a cost-effective, comprehensive solution positions it well to attract and retain a diverse customer base.

Next Section: Performance

Performance

PromoTix has demonstrated notable growth metrics in recent years. The company reported a year-over-year fee revenue growth from $265.8k in 2022 to $693.2k in 2023, representing an increase of approximately 160%. The projected fee revenue for 2024 is estimated to exceed $1.5 million, indicating continued positive momentum.

The platform has generated $46.1 million in gross merchandise value (GMV) over the first 29 months, with gross margins exceeding 82%. This high margin level suggests efficient cost management and a strong potential for profitability as the company scales. Additionally, PromoTix has reported decreasing losses year-over-year, from -$656.6k in 2022 to -$175.3k in 2023, with an estimated profit of $300k+ for 2024. This trend towards profitability is a positive indicator of the company’s financial health and operational efficiency.

In terms of user metrics, PromoTix has attracted 676k users, including 25.1k event creators, showcasing significant market acceptance and traction. The company’s ability to onboard a large number of event creators is crucial for sustaining growth and expanding its market presence.

Financially, PromoTix reported cash and cash equivalents of $66.6k at the most recent fiscal year-end. The company’s most recent monthly burn rate is approximately $14.6k, suggesting a limited runway that necessitates careful financial management and potential future funding rounds to sustain operations and growth initiatives.

PromoTix's high lifetime value (LTV) of $161 and low customer acquisition cost (CPA) of $25 further underline the efficiency of its business model. These metrics indicate that the company is effectively acquiring and retaining users at a cost significantly lower than the revenue generated from each user, which is a positive sign for long-term sustainability.

Overall, while PromoTix has shown strong growth and improving financial metrics, the company must continue to manage its cash flow carefully and sustain its user acquisition and retention strategies to maintain its positive trajectory.

Next Section: Risk

Risk

Investing in PromoTix presents several specific risks that potential investors should carefully consider. One notable risk is the nature of PromoTix as a two-sided marketplace. Platforms of this type are inherently challenging to build and scale, requiring significant capital and strategic execution to balance the needs of both event organizers and attendees. The success of such marketplaces often depends on achieving a critical mass of users on both sides, which can be difficult and resource-intensive.

Another key risk factor is the company's current financial runway. PromoTix reported cash equivalents of $66.6k at the most recent fiscal year-end, with a monthly burn rate of approximately $14.6k. This indicates a limited runway, necessitating additional funding to sustain operations and continue product development. A short runway can lead to an urgent need for future funding rounds, potentially resulting in unfavorable terms for early investors.

The competitive landscape also poses significant challenges for PromoTix. The market for event ticketing and marketing is highly competitive, with established players like Ticketmaster, Eventbrite, and StubHub dominating the space. These incumbents have substantial resources and entrenched market positions, making it difficult for new entrants to gain traction. PromoTix must differentiate itself effectively and capture a significant share of the market to succeed, which requires sustained investment in marketing and customer acquisition.

Additionally, the company's reliance on continued user growth and market expansion introduces further risk. While PromoTix has reported impressive initial traction, with 676k users and $46.1 million in GMV over 29 months, maintaining this growth trajectory will be essential for reaching the desired exit valuation. Any slowdown in user acquisition or market penetration could adversely affect the company's revenue and overall performance.

Lastly, the company's current debt levels may pose a risk. PromoTix has reported long-term debt of approximately $2 million. Managing this debt while striving for growth could strain financial resources, particularly if revenue targets are not met. Balancing growth initiatives with debt repayment obligations will be crucial for maintaining financial stability.

Next Section: Bullish Outlook

Bullish Outlook

A bullish outlook on PromoTix highlights several positive factors that could contribute to the company's growth and success. One of the key factors is the substantial market opportunity in the global online event ticketing industry, valued at approximately $55.4 billion and projected to grow at an annual rate of 6.0%. The increasing adoption of internet-enabled devices and the rising popularity of mobile applications for ticket booking provide a broad potential user base for PromoTix's platform.

PromoTix's unique strengths and competitive advantages lie in its ability to reduce service fees and integrate advanced marketing tools directly into its platform. This cost-effective approach appeals to event organizers seeking to maximize their profitability and streamline their event management processes. The platform's capability to handle both in-person and live-streamed events further broadens its appeal and market potential.

PromoTix has demonstrated notable achievements, including generating $46.1 million in GMV over the first 29 months and achieving high gross margins of over 82%. The platform has attracted 676k users, including 25.1k event creators, showcasing significant market acceptance and traction. These metrics indicate strong initial performance and a solid foundation for future growth.

Favorable investment terms, including a valuation cap of $15 million and a 10% discount, provide early investors with a price advantage and some protection against excessive dilution in future funding rounds. These terms are competitive within the industry and offer potential upside for investors.

Several growth drivers could lead to significant expansion for PromoTix. The company is leveraging emerging trends such as the increased use of digital projection and satellite delivery for diverse programming options, enhancing the customer experience. PromoTix's focus on innovative features like RFID tags for ticketless entry and cashless transactions aligns with industry advancements and customer preferences.

Financially, PromoTix has demonstrated strong revenue growth, with fee revenue increasing from $265.8k in 2022 to $693.2k in 2023, and a projected revenue of over $1.5 million for 2024. The company's high lifetime value (LTV) of $161 and low customer acquisition cost (CPA) of $25 indicate efficient user acquisition and retention strategies, supporting long-term sustainability and growth.

Overall, PromoTix presents several positive factors and growth drivers, including substantial market opportunities, unique competitive advantages, a strong leadership team, notable achievements, and favorable investment terms. These elements collectively position the company for potential growth and success in the online event ticketing market.

Next Section: Bearish Outlook

Bearish Outlook

A bearish outlook on PromoTix highlights several key factors that could negatively impact the company's growth and financial stability. One significant concern is the highly competitive landscape of the event ticketing industry. Established players like Ticketmaster, Eventbrite, and StubHub have substantial market presence and resources, making it challenging for PromoTix to gain significant traction. These competitors can leverage their extensive user bases, brand recognition, and financial resources to maintain their market dominance, potentially overshadowing PromoTix's efforts.

The company’s financial runway is another critical concern. With cash equivalents of $66.6k and a monthly burn rate of $14.6k, PromoTix has a limited runway, necessitating additional funding to sustain operations and support growth initiatives. The need for continuous funding rounds could lead to unfavorable investment terms, diluting early investors' equity and potentially impacting the company's financial health.

PromoTix's reliance on continued user growth and market expansion introduces further risk. While the company has reported impressive initial traction, maintaining this growth trajectory is essential for reaching desired revenue and valuation targets. Any slowdown in user acquisition or market penetration could adversely affect the company’s financial performance and overall growth prospects.

From a competitive standpoint, PromoTix may also face challenges in differentiating itself effectively. While the company aims to reduce service fees and offer integrated marketing tools, established competitors also provide robust platforms with extensive features. PromoTix must continuously innovate and enhance its platform to remain competitive, which requires significant investment and strategic execution.

Financially, the company’s revenue growth, while notable, may not be sufficient to sustain long-term profitability and support its valuation targets. PromoTix's ability to monetize its platform effectively remains unproven, and achieving sustainable revenue streams is crucial for long-term viability. Any delays or obstacles in revenue generation could exacerbate financial instability and hinder growth.

Next Section: Executive Summary

Executive Summary

PromoTix is a company operating in the media, entertainment, and publishing industry, providing a ticketing platform for in-person and live-streamed events. The platform aims to reduce service fees and integrate advanced marketing tools, targeting event organizers, venue owners, and promoters who seek cost-effective event management solutions.

The global online event ticketing market is valued at $55.4 billion and is projected to grow at an annual rate of 6.0%. Key market drivers include increased internet adoption, rising disposable income, and technological advancements in event management and ticketing. While these trends present growth opportunities for PromoTix, the market is highly competitive, with established players like Ticketmaster, Eventbrite, and StubHub dominating the space.

PromoTix has demonstrated strong growth metrics, with fee revenue increasing from $265.8k in 2022 to $693.2k in 2023, and a projected revenue of over $1.5 million for 2024. The platform has generated $46.1 million in GMV over 29 months, with gross margins exceeding 82%. However, the company’s financial runway is limited, with cash equivalents of $66.6k and a monthly burn rate of $14.6k, necessitating careful financial management and potential future funding rounds.

PromoTix differentiates itself by offering a cost-effective solution with reduced service fees and integrated marketing tools, appealing to a diverse range of event organizers. The platform’s ability to handle both in-person and live-streamed events broadens its appeal. However, the company must continuously innovate to maintain its competitive edge in a market dominated by larger players.

Investing in PromoTix presents several risks, including the challenges of building and scaling a two-sided marketplace, a competitive landscape with established players, and a limited financial runway. The company’s reliance on continued user growth and market expansion introduces further risk, as does managing regulatory compliance and debt levels.

Overall, PromoTix presents a balanced investment opportunity with both potential and risks. The company’s niche focus and experienced team are strong points, but the challenges in revenue generation, competitive pressures, and financial management must be carefully considered. Investors should weigh these factors when evaluating the potential for returns.

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Company Funding & Growth

Funding history

Total Prior Capital Raised
$1,780,000
VC Backed?
No
Close Date Platform Valuation Total Raised Security Type Status Reg Type
04/06/2025 Wefunder $15,000,000 $103,633 SAFE Active RegCF
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Founder Profile

Will Royall's Vision to Lower Event Costs and Improve Marketing for Event Creators

Every customer has already experienced the painful experience of seeing that the price at checkout is higher than the advertised price because of high hidden fees. Unfortunately, Ticketmaster, the event ticketing giant, is a master at adding a fee of around 30% to every ticket it sells. 

To help event organizers increase their revenues and help more attendees afford events, Promotix is offering patented marketing tools for a low fee of only about 3%. We interviewed the founder and CEO, Will Royall, to better understand how he navigates the challenges of growing a two-sided marketplace.

Read Founder Interview

Founders: enhance your startup's credibility on Kingscrowd. Create an account to claim this raise page.
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PromoTix on Wefunder 2024
Platform: Wefunder
Security Type: SAFE
Valuation: $15,000,000

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