In five years, San Francisco-based Eventbrite has come to define online ticket sales for small events, a market overlooked by giant Ticketmaster. Last year, the company sold 11 million tickets to the tune of $207 million in annual revenue, the New York Times reports, and the company is targeting $400 million in ticket sales this year.
The swift growth is partly fueled by the company’s foray into selling tickets at the door of events using an iPad app and credit card scanners. While the company isn’t profitable yet, it has attracted $80 million in private investment including $50 million in May from Tiger Global Management, the Times reported.
Eventbrite undercuts major competitors by charging lower fees. Consumers pay a fee of 2.5 percent of the ticket price plus 99 cents and credit card charges of about 3 percent for a total surcharge of 10.5 percent, about one-third of Ticketmaster’s surcharge, the story said. While small events have been Eventbrite’s bread and butter, the company isn’t ruling out expanding to larger events such as major concerts, which traditionally have been Ticketmaster’s domain. The giant sold 120 million tickets last year with a total value of $7.2 billion, the Times reported.
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