Broker-owned ticket exchange Ticket Evolution has ceased its fundraising efforts for “at least six months to a year” after the company attracted four major ticket brokers as investors.
Boston’s Ace Ticket, Chicago’s Gold Coast Tickets, Los Angeles’ Barry’s Tickets and New York’s AllShows all invested undisclosed amounts in Ticket Evolution in recent weeks, which brings the total number of investors to 120.
“Their investment and commitment to our company will help to further our goal of creating the strongest broker community and largest real-time secondary ticketing platform,” the company said in a statement.
Ram Silverman, co-founder of Ticket Evolution, told TicketNews that the company’s recently elected board of directors will consider whether further investments are needed, but that process will not begin for at least six months to a year.
“We’re going to be done [with fundraising] for some time,” Silverman said. “We’ll see where we are next year, but reaction from brokers has been phenomenal.”
Silverman, who co-owns Texas-based Golden Tickets with Steve Parry, launched Ticket Evolution in July 2010 with Parry and former National Events Co. executive Drew Gainor.
The company has steadfastly declined to disclose how much it has raised, but last year it raised an estimated $1 million and hoped to generate more than that amount this year.
Jim Holzman, owner of Ace Ticket, told TicketNews that he and the other major brokers to invest did so because they believe that as the ticket resale industry continues to mature, there are opportunities for more entities to compete.
“Investment-wise, it’s been a great investment,” he said, adding that initial company shares were selling for $1 each last year and $1.50 each this year. Investing is private and closed to full-time ticket brokers. “As it continues to gain momentum, I’m sure the value of shares will also continue to rise, and based on the products I’ve seen, I’m very excited.”
In addition to a broker exchange, the company also offers a ticket inventory uploader and has begun beta-testing it point-of-sale (POS) software product. More than 500 brokers are currently using the uploader, Silverman said, and about 250 are using the exchange’s EvoPay system, which attempts to simplify payments between brokers.
“We’re going to focus on improving the uploader, the exchange and the POS going forward, and I hope they become the new standard in the industry,” Silverman said.