Last fall, Eventbrite CEO Julia Hartz made a big business bet to spend $200 million, the equivalent of the 12-year-old ticketing site’s revenue last year, to buy a competitor, Ticketfly, from Pandora. To do so, she had to raise $134 million in a previously unreported funding round, one that came with an unusual degree of concessions to protect the investors from risk.
The deal appears to be part of a strategy to increase Eventbrite’s sales, and comes as the company eyes an eventual public offering. With the addition of Ticketfly, Eventbrite hopes to capture more of the market for large events like concerts. Eventbrite, whose value Pitchbook puts at $1.5 billion, is forecasting $300 million in revenue this year, after pulling in about $200 million last year, according to a person briefed on the matter. The bulk of the revenue growth is likely thanks to Ticketfly, which made about $76 million in revenue through the first three quarters of 2017, according to public filings.