*NEWS: Insurer of Concert Tickets Gets National Platform
A startup that insures concert tickets has entered into a strategic partnership with a national platform that provides ticketing services for thousands of arts, entertainment and sports organizations worldwide.
Protecht, with HQ in Newport Beach, created a way for attendees to insure their purchased tickets, registrations or bookings through its TicketGuardian technology and FanShield suite of products.
It’s now partnering with Tickets.com.
Financial details of the partnership have not been disclosed.
The partnership gives Tickets.com’s partners access to the TicketGuardian tech, allowing for “expansive” control over ticket inventories as well as access to real-time data and analytics.
The two award-winning, tech-focused companies are also teaming up to offer the FanShield products to Tickets.com partner venues and the event-goers they serve, offering patrons the opportunity to protect their purchases against unforeseen circumstances.
FanShield is now available as an option in digital ticket purchase transactions for select Tickets.com partner venues, as well as for patrons buying tickets through other channels such as the box office, call center and direct sales marketing.
The startup has received $13 million since inception, including a recently-closed Series A round that raised $8 million, led by AmFam Ventures and IA Capital. This round closed at a $73 million valuation. (See related story here).
$10 million of it’s financing is in equity, Derbyshire told OC Startups Now.
Protecht may open a Series B round in Q2.
It’s been in revenue since March 2016. Sales are growing and doubled last year, Derbyshire said.
The TicketGuardian tech and Fanshield insurance suite were created to safeguard a significant portion of the $9 billion that IBISWorld estimates consumers spend to purchase tickets online for concerts, sporting events, live theater, fairs, festivals and other events.
It’s estimated that U.S. online ticketing revenues for sports and music events alone totaled about $7.1 billion in 2017.
And, the demand of the market shows that attendees of events want the same flexibility that every other commerce interaction has in today’s modern online economy, Derbyshire told OC Startups Now.
With live events and experiences expanding globally, millions of people are experiencing an increase in ticket prices. The average face-value ticket price in 2017 among the top 100 grossing concert tours in North America was $78.93, according to Pollstar.
Protecht launched in 2016. It has won an award for best InsurTech company in North America from Efma Accenture Distribution & Marketing Innovation Awards, a global competition.
Buying tickets himself catalyzed his founding of protecht.
“Everyday I learn from every interaction I have,” he told OC Startups Now. “The experiences of starting something in the past and leveraging those lessons to help expedite the success of TicketGuardian were crucial early on while they were relevant. As we have now grown past my prior successes, I lean heavily on my team, clients, board, and personal experiences and gut to make decisions.”
Prominent customers include ShowClix, Accesso Showare and events.com.
Protecht has five of the top 10 ticketing platforms in the world under contract and all have plans of launching in Q1 or Q2, Derbyshire said.
He said OC is the perfect location for protecht’s HQ, “as the competition for innovative companies with our scale is low, and although the presence of some of the industry’s Mount Rushmore companies may have a local presence, they tend to draw a different talent pool.”
Protecht contributes to the overall success of OC’s startup ecosystem by “continuing to help drive innovation… by helping to support STEM programs for women, hackathons for the general area, and working with UCI and other local code schools to keep OC relevant and (prevent) talent from leaking up to the Bay Area or LA.”