IdBase IS REVOLUTIONIZING THE $1.14 TRILLIONDOLLAR LIVE EVENT INDUSTRY
BUSINESS PLAN | 2024
The information presented in this document is highly sensitive and confidential and is to be used by authorized parties for the purpose of determining a preliminary indication of interest in IdBase Technologies Inc , (“IdBase” or “the Company.”) The recipient of the Business Plan agrees by its receipt not to reproduce, duplicate, or reveal, in whole or in part, information presented herein without the written permission of the Company.
The information contained in the Business Plan was provided by the Company and other sources. It has been reviewed, approved, and released by the Company, who assumes responsibility for its contents. Estimates and projections contained herein have been prepared by the management of the Company, involve significant elements of subjective judgment and analysis, and are based on certain assumptions. Actual results may vary from estimates and projections and these variations may be material.
No representation or warranty, expressed or implied, is made as to the accuracy or completeness of the information contained in this overview, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. The Business Plan does not purport to contain all of the information that may be required to fully evaluate the Company for a potential business relationship, and any recipient thereof should conduct its own independent analysis and due diligence process.
THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITY.
For additional information, contact:
IdBase Technologies Inc.
Alan Gelfand, CEO/Founder Vancouver, BC
Tel: +1 (604) 324-7849
Website: www.idbase.com
Email: info@idbase.com
This Business Plan was prepared by:
CONCORD BUSINESS DEVELOPMENT INC.
500-666 Burrard Street
Vancouver, BC V6C 3P6 Canada
Tel: (604) 689-2556 Fax: (604) 689-7758
Website: www.concordbusiness.com
Email: info@concordbusiness.com
BUSINESS PLAN HIGHLIGHTS
Name of Company IdBase Technologies Inc.
Business
Value Proposition
Global Identity Authentication Network integrated with venue access control systems for ticketed live events and conferences.
1. Increased security for venues, with identity attached to each ticket
2. Accurate data obtained for artists, teams, and venues
3. Strategic partnerships and strong B.O.D. & management team
4. Proprietary IP that works with all ticket formats
5. First to market
Industry Analysis
Funds Required (all funds in USD)
The events industry size is expected to reach $1.553 trillion by 2028, registering a CAGR of 11.2% from 2021 to 2028. The corporate events and seminar segment is estimated to reach $454.6 billion by 2028, at a CAGR of 12.4% during the forecast period1 .
Phase 1: $2,500,000 Phase 2: $5,000,000.
Revenue Projections (all funds are in USD) Yr 1: $0; Yr 2: $3,369,521; Yr 3: $11,799,004; Yr 4: $30,909,216; Yr 5: $62,265,297
IdBase Technologies Inc. (IdBase) is revolutionizing the $1.14 trillion-dollar live event industry with its proprietary authenTICKET™ and VERIF-iD™ technologies, which solve key challenges that venues and guests experience. IdBase’ platform seamlessly integrates into any venue or ticketing partners’ existing infrastructure and acts as an access control centre which attaches an identity to each ticket purchased. The Company provides the first platform technology capable of eliminating bots from purchasing tickets to live events.
IdBase’s platform solves a variety of issues venues and event attendees currently face.
1.2 THE BUSINESS OPPORTUNITY
The live event industry size was valued at US$1.135 trillion in 2019 and is expected to reach US$1.965 trillion by 20282. The industry was completely shut down in March 2020 by the first global pandemic in over 100 years. During the recovery period in 2021/22, the need to positively identify each attendee matched with their confirmed health status became mandated prior to them being granted access into the venue.
Industry experts believe the need to positively know everyone attending live events & conferences has gone from “IF” to “WHEN”? If not only to be better prepared for future health requirements, but more importantly; security! With the increasing number of violent acts globally, and already targeted terrorist attacks at the tragic industry events in 2017 in the USA, UK, Russia, and the Taylor Swift “Eras Tour” concert in Vienna, (to name just a few), event organizers need to take every precaution possible to ensure the safety of their guests attending. That includes knowing the identity of every attendee. Many believe it’s only a matter of time before venue attorney’s and insurance companies instruct their clients to mandate identity to reduce potential liability.
Current solutions for obtaining ID are cumbersome and ineffective. As an example, the mobile ticket on an individual’s mobile device can only identify the phones IMEI number, not the person holding it, and in many instances, it’s not the preferred choice of ticket format. Biometric solutions have issues with remote enrolment and using these technologies for large volume efficient access control are likely still a
decade away. Additionally, consumer advocate groups have been successful in convincing some legislations to push back on biometrics being used and their data stored.
There exists an opportunity to create a single global identity authentication network that relies on a simple one-time efficient enrolment process that can be used at any event, in any venue, with any ticketing or registration company.
IdBase’s partnerships with global identity and document verification companies have enabled them to do just that. Rather than forcing ticket purchasers to a single mobile-only ticket option that relies solely on one technology, which has had continual challenges with access delays and even breakdowns, IdBase’s infrastructure allows for all ticket formats with enough fail-safe measures in place that it will not delay gate entry. Its biometric infrastructure allows for the industry’s first opt-out of face recognition for voice, and it never stores a facial image or voice recording, relieving all privacy and security concerns.
Finally, for the first time within the live event industry, the opportunity exists for a company to emerge as a leader increasing consumer confidence within a very plagued industry. IdBase’s ability to be the first company in over 175 years to eliminate the ticket scalper’s unfair advantage acquiring tickets, and most recently ticket bots, with its automated biometric identity will-call check-in platform, is what the industry and the public have been desperately waiting for. Most importantly, it allows billions of potentially lost revenue, scalpers have been siphoning out of the industry for decades, the opportunity to be recaptured thereby allowing fans to have more discretionary income to attend more events and spend more money at them.
“After years of abuses and indignities, American fans and ticket buyers are crying out for help attending a live event without scrambling
or being ripped off.”
1.3 TARGET MARKET
The targeted market for IdBase is ticketed live events such as concerts, festivals, theatrical plays, sports, conferences and conventions. In the future, the market can be expanded firstly to any type of ticketed event and eventually, to any type of application that requires a positive identity verification for all types of access-controlled entry.
US Rep. Bill Pascrell
1.4 BUSINESS MODEL
There are no fees for venues to launch IdBase’s platform; instead, consumers pay a per ticket authentication fee ranging between $.010-$1.00. IdBase has determined its Service Addressable Market for mobile, paper, RFID card, wristband and print-at-home tickets to be approximately $170m. The Company plans to have self-funding rapid growth by Year 3, with $15-20 million of recurring revenue by Year 4. IdBase enables the control of all ticket sales and transfers in the secondary market, providing accurate data and additional revenue to stakeholders.
1.5 COMPETITIVE ADVANTAGE
No other biometrics platform offers the kind of flexibility and security IdBase provides. Consumers are more likely to give biometric information when there is a benefit to them, such as a quicker and more convenient check-in process, and ability to easily transfer and sell tickets. Individuals are also able to optout of facial recognition biometrics and use voice activation instead. IdBase provides valuable data to venues, as they are now able to track each attendee’s movements throughout the venue wherever their biometrics were used.
IdBase is already integrated with valuable partners such as Tickets.com, and has an experienced set of Executives, Directors, Operational Managers, and Advisors.
The Company integrates with the existing venues ticketing and access control infrastructures, as well as seamlessly into the team, ticketing company or venues app thereby building their partners brand, not ours. This is a key distinction between IdBase and its competitors. Being agnostic provides more acceptance to both consumers and government legislatures.
“If you are a startup, you want to get to a monopoly. You want to be a oneof-a-kind company in a small ecosystem. Don’t always go through the tiny little door everyone is trying to rush through. Go around the corner, through the vast gate no one else is taking.”
- Peter Thiel, Founder, Founders Fund
IDBASE TECHNOLOGIES INC.
Issuer idBase Technologies Inc.
Securities Offered Common Stock
Offering Amount
Use of Proceeds
Maximum $250,000 Seed Capital
Operating Capital is needed until the company begins its Series CF Crowd Funding Round; this includes a patent amendment, company name change, filing legal feeds, test pilot event, and software development.
Investor Qualification Accredited, Friends & Family
Pre-Money Valuation
$3,200,000 USD
Share Price $.10
Minimum Subscription $10,000
Offering Period Expires Dec 31, 2024
1.7 CAPITAL REQUIREMENT AND USE OF PROCEEDS
The Company requires funding in the amount of USD$2.5M in Year 1 and USD$5M in Year 2.]
IdBase’s mission is to provide an attendee’s true identity to any live event or conference via a streamlined registration and check-in process, which attaches a persons identity to each ticket sold. What separates IdBase apart from all others is that it was purpose-built as an end-to-end, identity-based platform for the entire live event-going experience, from ticket purchase in the primary market, until the attendees leave the venue. This includes controlling all sales and/or transfers in the secondary market, as well as providing more accurate data and revenue to the stakeholders.
IdBase provides proprietary ‘infrastructure layers’, enabling data capture and verifications of (true) identity, where data capture and/or verified identity are not available, incomplete, or worse; inaccurate. IdBase reduces users wait times at events, especially where mandated ID is required. Users can additionally opt-out of Facial Recognition to use Voice Recognition wherever IdBase is in use, while all ticket formats are available with a multiplicity of check-in options, which increases security and supplies the consumer with choice. IdBase does NOT save the facial image or the voice recordings of its end users, therefore, it can never be stolen.
2.2 VISION
IdBase Technologies’ vision is to create an efficient Global Identity Authentication Network for live events and conferences, that integrates with all ticket companies and venue access control accomplishing 3 major goals:
A) We eliminate ticket bots and all unauthorized brokers and scalpers, allowing the Artist to get the tickets to their fan base at the price they want their fan to pay.
B) We provide more accurate data, and better security for all attendees, by positively identifying who is coming into the venue.
C) Identity deters bad actors from targeting venues and holds attendees more accountable for their actions providing additionally needed security for all attendees.
2.3 CORPORATE DATA
Company Name
IDBASE TECHNOLOGIES INC. DATA
IdBase Technologies Inc.
Incorporation Date June 19, 2024
Place of Incorporation BC, Canada
Principal Address of Business #2302 – 1000 Beach Avenue, Vancouver, BC V6E 4M2
Telephone +1 604-324-7849
Website www.Idbase.com
Email info@idbase.com
Legal Counsel
Clark Wilson LLC
Directors Alan Gelfand, Mark Brenner
CEO Alan Gelfand
2.4 COMPANY HISTORY
IdBase originated from the Vancouver 2010 Olympics, where fraudulent tickets and scalping were a major problem and individuals from around the world left disappointed as they discovered they had been sold fake tickets. With no way to identity whether a ticket being sold was legitimate, and no way to identify who a ticket had been sold to, IdBase came up with a solution to this problem. The idea was to attach some form of a person’s identity to any ticket format being used at venues, and then using that identity before they even arrived at the venue’s gate to activate the ticket. The Company originally started by using a person’s credit card with a kiosk, then with a mobile application, to eventually evolving to using biometrics. Since then, the need for identity has become more valuable from both security and health aspects, where additionally, health records may now be required for entry.
The Company also sought to differentiate itself from other platforms that tried to implement similar measures, but who had more issues. There has been a trend to move to a mobile-only ticket format, where an individual must have a ticket on their mobile device for it to be accepted. This proved to be a problem as recently as Super Bowl LVI, where Ticketmaster’s system went down 75 minutes before kickoff, meaning tickets could not be transferred from one account to another. Consumers who had already purchased tickets were also stuck outside the stadium until nearly the end of the first quarter when systems were turned back on4. Having mobile-only ticketing means there are no back-ups when there are system failures. IdBase solves this problem by creating a system that is more in line with how airlines work, where individuals can have either physical or mobile tickets that can still be verified with ID The Company is also the only service to provide voice activation as a back-up biometrics measure, and to attach an individual’s identity to all ticketing formats.
The Covid pandemic of 2020 provided further evidence that identity could not be established from a mobile ticket. Live event attendees were required to manually produce their ID prior to gate entry, which was matched up against their vaccination passports even though they had a mobile ticket, or else they would not be admitted into the event.
Alan Gelfand is the founder and CEO of IdBase, where he has pioneered a revolutionary new ticket authentication identity detection platform for live events by creating the world’s first ‘check-in’ system that works with every type of ticketing format. Prior to IdBase, Mr. Gelfand was an equities broker with Yorkton Securities, where he managed high net worth portfolios. Yorkton transitioned to Wolverton Securities in 1992, where Mr. Gelfand remained until 2001. In 2002, he became the founder, president, and director of American Oil and Gas, where he sat on the board’s Compensation Committee from 20022007. American Oil and Gas was acquired by a corporation in 2010 for $445 Million. Mr. Gelfand received his Bachelor of Business Administration from Simon Fraser University, BC, Canada.
Mark Brenner | Director
Mark Brenner is currently the co-founder and managing partner of Crimson Canyon, a company that invests and develops private real estate assets across the Southwest. Previously, Mark spent more than two decades dealing with State and Federal Government Agencies for various companies and is in direct communication with dozens of government officials. He served as Chief of Staff to the CEO and Senior Vice President of Corporate Communications and External Affairs of Apollo Education Group. His responsibilities included directing all activities related to external communications on behalf of Apollo Education Group and its subsidiaries. Prior to joining the organization in 2010, Mr. Brenner served as Vice Chairman of the Board and Executive Officer of College Loan Corporation running all external affairs and capital market activity raising more than $15B in asset backed securities. He also has held senior management positions with Fernwood Capital Management, Marshall Morgan LLC and William R. Hough & Co. Prior to that, Mr. Brenner served as Director of Legislative Affairs and General Counsel for the Education Finance Committee, held staff positions with the House Education and the Workforce Committee and the Senate Committee on Banking, Housing and Urban Affairs. He also served as an advisor to New York State Senate Majority Leader Ralph Mariano (R-NY). Mr. Brenner received his Bachelor of Arts degree in Political Science from Siena College, as well as a Juris Doctor degree from Albany Law School.
2.5.2 MANAGEMENT
The Company brings in an experienced management team with a high variety of backgrounds such as producing, technology, and directing. These individuals are leading IdBase into an extremely valuable company.
Dr. Timothy Kay | Chief Technology Officer
Dr. Timothy Kay is a highly regarded technologist who founded the word’s first successful web based Artificial Intelligence product, which was a precursor to Apple’s Siri. Dr. Kay holds a PhD in Computer Sciences and is a graduate of Brown and Caltech. His experiences include being the Chief Scientist for Silicon Gaming, an architect for the largest Bitcoin mine in the United States, and the Principal Software engineer for Synaptic Security. Dr. Kay worked as an advisor and infrastructure strategy builder to BOX
and won an Academy Award for CGI contributions while studying at Caltech and is the author of over 19 patents.
Rob Hill | Chief Financial Officer
Rob Hill is an experienced Chief Financial Officer and corporate director of public and private companies. He has more than 20 years of experience as a CPA, where he’s led organizations in Canada, the USA, and Japan. Mr. Hill is the founding officer and CFO of ImmunoFlex, a company created in 2020 to helped individuals combat and recover from viruses. He is also a founding partner at Restructure Advisors and is a highly sought-after business advisor to companies spanning a variety of industries ranging from software technology, engineering and scientific services, cannabis, real estate, and manufacturing.
Kieron O-Shea | Chief Strategy Officer
Kieran O-Shea is the Principal of Winfield Invest Partners, where his guidance created the Critical Path Foundation. He co-founded Providence Systems, the creator of Parental guidance and the world’s first internet filtering software. His is a founding member and investor for Collquis, which was later acquired by Microsoft, and is a Graduate of UCLA and attendee of Harvard College.
Rob Williams | Chief Product Officer
Rob is a results-driven executive with a diverse background in technology, product management, and innovation. With over 25 years of experience, Rob has successfully led teams in numerous sectors, from entertainment to consumer electronics. As the former Chief Product Officer at AudienceView, Rob's strategic vision and ability to motivate teams resulted in a $20M uplift in EBITDA during his tenure. As the Director of Technology and Innovation at the NEC Group, Rob was instrumental in driving a 300% increase in EBITDA, while overseeing a team of over 100 employees across technology functions and product development. A skilled public speaker and futurist, Rob has presented at conferences worldwide, advocating for the adoption of cutting-edge technologies. His passion for innovation and expertise in M&A, public speaking, and data visualization make him a sought-after leader for companies looking to stay ahead in a rapidly changing landscape.
Rastislav Hodul | Director of Engineering
Rastislav Hodul is a senior software engineering professional who has served in numerous technical companies. Mr. Hodul received his Master of Science in Computer Science from Slovenska Technicka Univerzita, Bratislave, and has led IdBase from its platform inception ad is responsible for its low-level ticketing infrastructure.
2.5.3 EXECUTIVE ADVISORS
Greg Saretsky*| Executive Advisor
Greg Saretsky is the former CEO of WestJet Airlines, Canada’s second-largest airline, where he was responsible for both the strategic direction of the company and their day-to-day operations. Under his leadership, the airline doubled its fleet, launched WestJet Encore, and expanded its service to Europe. Over his career, Mr. Saretsky has held various senior executive positions in the airline industry, ranging from SVP of marketing and planning to EVP flight operations and marketing, where he spearheaded airline
alliance strategies and new airline operator patronships. Mr. Saretsky has received numerous industry awards over his tenure, including being named Top New CEO of the Year by Canadian Business magazine. He holds a Bachelor of Science in microbiology and biochemistry from the University of British Columbia, as well as an MBA.
Robert DuPuy* | Executive Advisor
Robert DuPuy is the former MLB president and COO. He was responsible for all phases of business for the MLB, including labour relations for media markets, the international expansion of the MLB, and numerous stadium finance deals, including marketing and legal affairs. In addition, he was the founding CEO of the Major League Baseball Advanced Media (MLBAM) and is a graduate of Dartmouth and Cornell. Mr. Dupuy’s hands on management style brings valuable expertise to IdBase
William Jones* | Executive Advisor
William Jones is the founder and managing director of Beaumont Governance S.A., a group of companies providing directorship, company domiciliation services, and consulting services for the investment funding industry. Prior to this, Mr. Jones was the head of Legal, Compliance, Risk, and Alternative Fund Services for the Bank of Bermuda Ltd., which was subsequently acquired by HSBC. He was also the Director and General Counsel for Agora Capital Management Ltd., where Mr. Jones specialized in customized alternative investment products, with a significant focus on CTAs. His previous experience includes being the Executive Director and Head of Legal Department at the Goldman Sachs Group.
• Nominated to the BOD upon completion of a private placement in 2023.
2.5.4 ADVISORS
Casey Denton| Special Advisor
Caley Denton is the current Executive Vice President of operations at Shape Property Management. His prior experience includes being the Vice President of Ticketing and Marketing for the 2010 Vancouver Olympics, the CFO for the Vancouver Whitecaps, and working with Orca Bay (currently Canucks Sports and Entertainment) for 12 years.
Andrew Thomas| Special Advisor
Andrew Thomas is currently the Chief Operating Officer at Activity Stream and Managing Director of the Ticketing Professionals Conference in the UK. Andrew’s career has spanned more than 25 years, working as a vendor, venue operator and consultant in both the sports and performing arts sectors.
Jacques Aube | Advisor
Jacques Aube is a currently a management consultant for Parc Olympique, providing support to their upper management team for the current evaluation of operations and the preparation of its five-year operational plan. Mr. Aube was the President of Evenko, where under his leadership more than doubled their number of shows and significantly expanded its sectors of operation including Osheaga, one of Canada’s most distinguished entertainment events. Prior to Evenko, Mr. Aube was the Executive Director of Finance for the Montreal Canadian Hockey Club.
Irwin Raij | Advisor
As Partner and Co-Chair of the Entertainment Sports and Media Industry Group at Sidley Austin LLP, Irwin P. Raij has extensive experience advising clients on a wide range of sports business issues, on both the professional and the collegiate levels. He has represented owners and acquirers of professional sports teams, leagues, universities, and state governments. His experience includes matters related to MLB, MiLB, MLS, NBA, NHL, NFL, and EPL, along with major colleges and universities. He also is an owner of the Oklahoma City Dodgers (MiLB), and the MLS Los Angeles Football Club (LAFC)
Kevin Donnelly | Advisor
As Senior Vice President, Venues & Entertainment for True North Sports & Entertainment, Kevin Donnelly is responsible for managing Canada Life Centre as a facility and its event calendar. He transitioned to building and event management in 2001 after years of being a successful promoter, both independently and with House of Blues Concerts Canada. He has become an experienced resource in the entertainment industry, both in Winnipeg and across Canada. In April 2014, True North assumed operation of the 1,600seat historic Burton Cummings Theatre.
Peter Virvilis | Advisor
Peter Virvilis was appointed Chief Financial Officer of Haywood Securities in 2017, and he is also a Director of Haywood. Prior to that, Peter served as the Executive Vice President of Operations and Treasurer of Canaccord Financial where he had a very distinguished career of service since 1987. Peter has made important contributions to the Canadian securities industry by his service to various industry organizations, including as a Director of CDS and a member on many of its committees, as well as being Past Chairman of the IIROC Financial Administrators Section. Peter earned his BA Commerce degree from UBC in 1983.
Ralph Marchetta | Advisor
Ralph recently joined ASM Global as a regional vice president for live entertainment overseeing and booking all concerts at both the Desert Diamond Arena and State Farm Stadium that sit next to each other in Glendale, in Phoenix’s West Valley. As the world's leading venue management company and producer of live event experiences, ASM Global is the preeminent management and content partner with over 400 venues worldwide. Prior, he had an impressive run as SVP of the Phoenix Suns and General Manager of the now Footprint Center since it opened in 1992 booking their concerts and special events. During his tenor he also worked directly with the NBA, WNBA, ECHL and AFL helping schedule their games. He is a graduate of Arizona State University.
Robert Eckle | Advisor
As President and CEO of Aware, Inc., Bob is responsible for the Strategic direction, growth and operations of a leading recognized Global supplier of Biometric Solutions and Services for government and commercial customers and industry partners.
Derek Palmer | Advisor
Derek is currently the COO of Project Admission. Prior to his appointment Palmer boasts a 28-year career in the ticketing industry. For nearly 15 years, he held senior roles at Tickets.com where he was the manager of ticketing for both the Sydney and Atlanta Summer Olympic Games and last served as Managing Director and Executive Vice President of International. During his tenure there, Palmer worked closely with the majority of Major League Baseball, Premier League soccer, Wolf Trap National Park for the Performing Arts and other notable institutions. Most recently, Palmer served as Chief Operating Officer at Qcue, a software company utilized by Sports and Entertainment organizations to dynamically price and distribute tickets, in addition to having served as the Chairman for the Board of Directors for the International Ticketing Association (INTIX).
Scott Jablonski | Advisor
Scott Jablonski is currently the COO of 3D Digital Video and founder and CEO of 77 Analytics. Scott is also a Strategic Advisor to numerous other companies. He is the former General Manager of Stubhub for the NFL, NBA, and NHL, which is the world’s largest secondary ticketing marketplace, and has been in executive management roles for the National Hockey League and the National Basketball Association. Scott is a graduate of Harvard Business School.
Steve Stonehouse | Advisor
Steve is currently the Head of North American Markets at MMC – 3D Digital who is partnered with over 3 dozen ticket companies throughout the world. He has over 20 years of senior executive sales experience servicing the NBA, NFL, MLB, NHL, MLS, NCAA and NASCAR. Through his extensive industry relationships, he has led the development in the seat upgrade system for arenas, teams and venues. Mr. Stonehouse is a graduate of the University of California at Berkley.
2.6 STRATEGIC ALLIANCES AND PARTNERSHIPS
IdBase intends to leverage over 1,000 industry relationships developed throughout its pre-launch phase to ensure success in post Pilots Series. The company’s relationships and those of its advisors and employees have proved to be invaluable in gaining the attention of the leading companies each of the target markets.
IdBase is fortunate to benefit from the AI R&D programs of the companies below, which are consistently at the cutting edge to meet the advanced security and privacy needs of their government clients, utilizing the same technologies.
Aware- Biometrics Software
AWARE is a global leader in biometrics software, solutions, and services. IdBase has partnered with AWARE to gain access to its biometrics software. AWARE is used in over 20 countries by over 100 commercial leaders, 20 industry partners, and 80 government agencies.
Regula- Document Verification System
Regula is a documentation verification system now servicing 248 countries to authenticate governmentissued IDs within seconds. Regula is used by government ministries, law enforcement, banks, airlines and airports, and has partnered with the UN and Interpol.
Regula works by scanning an ID document with a camera and verifying a user’s identity by matching their portrait from an ID document against RFID and their photograph. Regula has over 14,000 document identification templates.
Tickets.com – owned by Major League Baseball
The partnership with Tickets.com is the first step into integrating with the massive sports even industry. Tickets.com has access to numerous venues in the industry. The total attendance in 2019 was 68.5 million, and 80 million tickets are sold annually on Tickets.com. IdBase’ platform integration with Tickets.com is complete, and The Company is now certified as on of their Registered Developer Partners. Tickets.com has committed to finding pilot venue partners for IdBase.
“
After years of abuses and indignities, American fans and ticket buyers are crying out for help attending a live event without scrambling or being ripped off.
”
— IS Rep. Bill Pascrell
3 THE PLATFORM
3.1 THE FUTURE OF TICKETED EVENTS
One of the current problems in today’s ticketing industry is the inability to attach an identity to a ticket being purchased. This especially becomes an issue when the ticket enters the secondary ticketing market, as purchasers cannot ensure the ticket being bought is genuine, or that they will be able to use it.
Having to verify each individual ticket at the same gate at a venue causes major congestions and delays for eventgoers. The necessity of having to check each ticket manually requires a lot of staff and cannot be done efficiently when an event holds a large amount of people that arrive at similar times. This causes long lineups that delay entry, which means some frustrated individuals can miss large parts of an event.
IdBase Technologies aims to solve these problems by attaching an actual identity to each individual ticket. By doing so, tickets can be activated as soon as an individual is close to the venue before they even approach the gate. Having identities attached to the ticket also allows the venue to gain valuable data on who is attending their events, as there is currently no way for businesses to obtain this data. In addition, secondary ticket buyers will feel more confident and secure in their transactions.
IdBase has no restrictions for what a purchaser can do with their ticket. By associating an identity with one, a venue knows who possesses the ticket. In turn, individual can sell, trade, or exchange their tickets. When ticketing companies decide to restrict ticket movement, the venue pays the price in the way of lost revenue and data.
3.1.1 WINDOW OF OPPORTUNITY
On May 23, 2024, The Justice Department, along with 30 state and district attorneys general (increased to 40 on August 19), filed a civil antitrust lawsuit against Live Nation Entertainment Inc. and its wholly owned subsidiary, Ticketmaster LLC (Live Nation-Ticketmaster) for monopolization and other unlawful conduct that thwarts competition in markets across the live entertainment industry. The lawsuit, which includes a request for structural relief, seeks to restore competition in the live concert industry, provide better choices at lower prices for fans, and open venue doors for working musicians and other performance artists.
The complaint, filed in the U.S. District Court for the Southern District of New York, alleges that Live Nation-Ticketmaster unlawfully exercises its monopoly power in violation of Section 2 of the Sherman Act. As a result of its conduct, music fans in the United States are deprived of ticketing innovation and forced to use outdated technology while paying more for tickets than fans in other countries. At the same time, Live Nation-Ticketmaster exercises its power over performers, venues, and independent promoters in ways that harm competition. Live Nation-Ticketmaster also imposes barriers to competition that limit the entry and expansion of its rivals.
This creates a unique opportunity for a third-party agnostic platform like IdBase to emerge as a global leader in solving the identity problem, creating a fairer and safer live event landscape for all.
3.1.2 LEGISLATIVE LANDSCAPE OF LIVE EVENTS
The live event industry continues to face a constant stream of challenges, often on a weekly, if not daily, basis. Consumer sentiment worldwide has deteriorated to the point where governments are actively seeking to implement legislation to address these issues. However, there are few, if any, effective tools to enforce these newly enacted laws. Currently, over a dozen countries have laws prohibiting the resale of tickets above face value. In the US alone, 16 states have such laws, and Canada has a few provinces as well. Additionally, the US has enacted several laws banning the use of ticket-purchasing "bots" and most recently, the UK’s new Prime Minister has pledged, as part of his election campaign, to introduce a law limiting ticket resale to 10% above face value.
Consumers are also increasingly frustrated by service fees, fraud, dynamic pricing, system crashes during ticket sales, and the failure of verified fan programs to secure face value tickets. This growing discontent is further pressuring lawmakers to protect consumers with more regulations.
IdBase is in a unique position to solve many of these issues. Once the company successfully completes its pilot programs and moves towards commercialization, it could become a mandated solution for the industry.
3.2 EVENT INDUSTRY CHALLENGES
The current ticket formats used, such as mobile, wristbands, and paper, lack engagement, and venues are not able to obtain valuable data from them. Mobile tickets can identify a phone, but not an individual. Additionally, systems can fail and then the event ticket is lost with no other alternative. Wristbands and paper tickets are both unsecure options that lack an individual’s identity, making it easy for ticketing fraud to occur.
Attendees often spend excessive time waiting in lines when they arrive at the event, sometimes as much as 30 minutes while they wait for screening and ticket checking, especially with mobile tickets. The longer patrons wait outside in an uncontrolled environment, the security risk increases, and the fan experience diminishes.
“There are a multitude of reasons why people had such a hard time trying to get tickets and I’m trying to figure out how this situation can be improved moving forward.”
- Taylor Swift
3.2.1 BIOMETRICS
The introduction of biometrics into live events has had very limited success and only for very small sample tests. The industry believes that the missing link to future biometric venue adoption in many different aspects is the ability to have a successful biometric platform that enrols an attendee’s biometrics first, and then replaces their ticket with the biometrics to be checked at access control. Hence, their face becomes their ticket. The problem is the technology for this type of application which would have to be successful moving 75,000+ frictionless through a gate entry portal is likely still a decade away.
IdBase took a much different approach. Rather than using a person’s facial image at access control to allow them gate entry, IdBase’ infrastructure was purpose built for security using one to one biometric
matching prior to the gate on one’s own mobile phone to identify themselves within a close proximity of the venue. As that conformation happens, IdBase communicates to the venues scanners that once the ticket associated with the identity gets scanned, the attendee can be admitted into the venue. Therefore, the key difference is that IdBase’s biometric infrastructure provides ticket activation prior to the gate, using existing venue infrastructure, vs at gate biometric entry. This not only allows for a frictionless entry, but also allows for any ticket format to be used for the event, emphasizing a tap-n-go entry similar to larger volume access control infrastructure globally.
Additionally, in the event an attendee wants another option of checking in not using their mobile device or, their mobile device fails, rather than going to a manual ID check for clearance, IdBase supplies kiosks prior to the gate which can be used for biometric facial recognition check-in.
However, this technology is likely still a decade away.
Additionally, these platforms utilizing your face as your ticket are built for convenience with a very low threshold for matching and only requires a one-to-many match (1 to N) that won’t meet future security identity requirements. It also requires new infrastructure to be installed at every venue.
IdBase took a much different approach. Rather than using a person’s facial image at access control to allow them gate entry (their face is their ticket), IdBase’s infrastructure was purpose built for security using a one to one (1 to 1) biometric match prior to the gate on one’s own mobile phone to identify themselves within a close proximity of the venue. As the conformation happens, IdBase communicates to the venues scanners that once the ticket associated with the identity gets scanned, the attendee can be admitted into the venue. Therefore, the key difference is that IdBase’ biometric infrastructure provides ticket activation prior to the gate using existing venues infrastructure vs at the gate biometric entry requiring new infrastructure. This not only allows for a frictionless entry, but also allows for any ticket format to be used for the event emphasising a tap-n-go entry like the largest volume access control infrastructures globally (China, Japan, Russia subway systems). Additionally, in the event an attendee wants another option of checking in not using their mobile device or, the mobile device fails, rather than going to a manual ID check prior to entry, IdBase supplies kiosks prior to the gate which can be used for biometric recognition check-in.
3.2.2 TICKET BOTS
Ticket “bots” have become live events biggest nemesis for the real fan attempting to purchase tickets for the past 10+ years. They use algorithms and AI to pretend they are actually a human being, getting around the ticket companies attempts to require humans to be verified as actual purchasers. Their ability to firstly acquire pre-sale codes from sponsors and verified fan portals, and then bypass the “captcha” allowing them to have first selection purchasing on-sale tickets, leaves the average fan disappointingly missing out on their favorite act, or having to purchase tickets at well above face value prices on the secondary market.
IdBase’ infrastructure layers were purpose built to eliminate this unfair advantage, putting the proper checks and balances in place whereby a “bot” cannot circumvent the system to purchase tickets. That levels the playing field when purchasing tickets for all fans and brokers, who may still want to participate on the purchase, however, no longer have any advantage over the public. This puts IdBase as the first company to be able to successfully eliminate the “bots” ability to acquire tickets for live events.
Additionally, and aside from equalling the playing field for all purchasers, ticket bots continue to disrupt on-sale releases by the massive of number of attempts to purchase tickets which flood the infrastructure
often time forcing them to crash. The volume of attempts also creates artificial volume which drives the on-sale prices much higher when dynamic or in-demand pricing is used. These further upset buyers who find out once through the purchase que, that originally advertised prices have substantially increased which has become a topic of conversation with recent tours.
3.2.3 DESTROYED CONSUMER CONFIDENCE
There is likely no other industry that has so many negative connotations to it that destroy consumer confidence. As an example, the announcement of a fans favorite artist tour coming to their city, should bring nothing but excitement out of the gate. Why then, is a person’s first thoughts negative, wondering if they are even going to get a chance at getting a ticket due to bots and scalpers? This alone discourages many from even attempting to purchase tickets. When you add in what most feel are excessive service fees and being forced to purchase for multiple times more of a secondary market that has a history of fraudulent tickets, there is little to no joy when there should be. Additionally, the industry continues to force mobile ticketing as the consumer’s only option yet, in a recent survey of theatre goers, only 32% chose a mobile ticket as their preferred ticket5. Unnecessarily taking away a consumer’s choice is far from being customer-centric.
When a person tries to sell a ticket they can’t use, they should have all their selling options in one place where every possible purchaser can see. However, many events have up to 5% no-shows6 meaning, consumers are not able to sell their tickets and therefore are losing their investment. How many times do fans get stuck with left over season tickets they couldn’t sell, or even can’t get rid of before they decide to not renew? How much potential ancillary revenue is lost by the venues for having empty seats that were paid for?
Finally, nothing could be more detrimental to any purchaser, than continually hearing and seeing the media barrage of constant negative news from all corners of the live event industry! Once IdBase’s infrastructure is enabled, the Company becomes the center of change where many of the industry’s challenges disappear, reversing the negative connotations and putting consumer confidence back into the industry.
authenTICKET™ is the company’s Identity Based Access Control System (IBAS) for ticketed live events such as concerts, sports, festivals, theatre plays, special events such as Olympics and World Cup, and conferences The system records a person’s biometric data points on enrolment, then matches them up when purchasing a ticket, and then again when arriving at the venue ensuring the registered attendee is actually the one at entry This replaces the need for any manual ID check at the venue when required.
3.5 VERIF-iD™
VERIF-iD™ is the Company’s 3rd party integration system that allows event and venue partners to access the enrolled biometric data. This connection provides more efficient systems, additional revenue, and enhanced security In-venue partners such as access control and food & beverage companies now have accurate data to better produce an enhanced fan experience while making their event feel safer.
IdBase has filed patents for its proprietary IP covering its products listed above.
An improved user event experience!
IdBase will utilize its partnerships to provide a unique workflow using existing ticketing and venue infrastructures The process will involve a 1-time registration of documents and biometrics at the option of the ticket purchaser The registration can be prompted from a) a pre-registration or verified fan invite prior to on sale, b) a ticket sale purchase, c) receiving a ticket transfer and d) at any other time directly with IdBase Once registered, the actual attendee will be prompted to check-in within a proximity of the venue using their biometrics on either their mobile phone or kiosk A successful match completes the check-in which notifies the access control that the ticket associated with that account can now be recognized when scanned The registration does not have to be repeated and can be used at any event globally where IdBase is partnered with the artist, team or venue. This includes all aspects above. The registration process is secure and does not store any information from the individual’s documentation or their biometrics. Only biometric templates are stored against an email address so in the event of a potential cyber breach, nothing can be done with any of the stored information.
3.6.1 REGISTRATION | How IdBase Works
3.6.2 TICKET PURCHASE AND CHECK-IN FOR GATE ENTRY | How IdBase Works
3.6.4 GEOFENCE CHECK-IN
Current applications used for check-ins have no additional features to identify who the actual person checking in is, nor is there a true check-in functionality at venues. An engagement opportunity is also lost as there is no way to know if an attendee has seen a push notification on their mobile device.
With authenTICKET™, a Geofence is set up at a specified location and time near a venue. Once an attendee reaches it, they can check in away from the main gate. They can even do this while driving, as they are able to use Bluetooth to activate their ticket. A second Geofence is located closer to the venue, providing a 99.9% efficiency to ensure a successful check-in instantaneously.
3.6.5 KIOSK CHECK-IN
Kiosk check-ins will be used as an alternative and back-up to mobile check-ins. If someone’s verification on their phone does not work, or they do not wish to use a phone to activate their ticket, then they may use a kiosk at the venue. Without a kiosk, any mobile check-in could potentially delay gate entry and does not provide any additional value. These have been successfully used at airports for over a decade.
As attendees approach the check-in kiosk prior to the entry gate, their face ID would be recognized, and their ticket would become activated. If the face ID is not recognized, or the attendee opted out of facial recognition, then they would simply tap the credit card they used to purchase the ticket.
3.6.6 BACKSTAGE ENTRY
The current system for backstage entry involves manual check-ins for employees, and sometimes are only checked during the initial entry, leaving a venue’s security vulnerable. Additionally, sometimes only a worker’s company is identified, and not the actual person.
With VERIF-iD™ , all personnel requiring access would need to be pre-registered and then check-in via the app or with a kiosk using their biometrics. If a worker is required to re-enter the venue, they can be required to check-out using the kiosk, and then re-check-in. This allows for a complete tracking of attendees and workers who are entering and exiting the area and tracks the timely whereabouts of all registered individuals.
3.6.7 BOX OFFICE
When a box office is used, attendees are required to produce ID and explain what they need when they arrive at the will-call window. This procedure usually entails the attendant to receive a copy of an individual’s ID, and either enter it into the computer before facilitating a transaction or physically find an envelope with pre-arranged tickets in it. This process can be quite slow and create lines unless additional staff is hired, which could still not be enough due to limited windows.
With VERIF-iD™, facial recognition accelerates the will-call process substantially. A person will be recognized instantly via facial recognition as they approach the window, allowing for a much faster service when they reach the box office window.
3.6.8
WEAPON DETECTION
Current metal detector checks are completed using handheld or walk-through devices; however, these create friction and time delays at gates, as they need to be manually staffed, and attendees must both remove items from themselves prior to inspection and collect them once they pass through.
There is a new class of weapon detection devices that eliminate the need for individuals to remove items when they pass through them; however, they still must be staffed, and attendees may still be pulled to the side to be checked. Adding cameras to the detectors would enable every attendee’s photo to be taken as they pass through them. If an attendee were flagged for an item, their photo could be matched up in the event database and their ticket would be disabled from being allowed gate entry. This ensures additional security, allows these detectors to be placed further from the venue’s gate, and requires no additional staff.
3.6.9 GATE ENTRY
Most existing gate systems require a manual ticket scan, which have always had the problems of requiring additional staff and scanner difficulties of recognizing tickets instantaneously. Many venues are also starting to attempt to restrict attendees to mobile-only tickets, which can cause quite a few problems and delays. Attendees would need to have their phones ready by the time they reach the gate, and some individuals may have trouble working with this technology. In addition, most health checks are being done manually right at the gate, as well as proposed facial recognition systems for ID checks, therefore creating extra delays. These delays cause crowd congestion in the same place, which increases the security risk in an uncontrolled environment.
authenTICKET™ is designed to increase the efficiency of existing venue ticketing infrastructures by identifying each attendee independent of what type of ticket format is used, at any venue, without an extra step at the gate. Both the geofence and kiosk check-ins are done prior to the gate and will not delay entry, allowing attendees to move efficiently through the gate and into a controlled environment, thereby reducing security risk.
3.6.10 SELF-SERVE KIOSKS
Today’s kiosks use touch screens that can create physical health risks, and which do not have access to an attendee’s historical data. They also require a final transactional checkout using some form of payment and a physical receipt for pick-up. With VERIF-iD™, attendees will be immediately recognized via facial recognition as soon as they arrive at the kiosk, which will also have access to their previous order history. Simple voice commands will allow attendees to place their order, pay with their credit card on film, and have their receipt sent to their phone, all without having to physically touch anything. Attendees will then be directed to a pick-up counter at a specific time with push alert updates from their phone.
3.6.11 FOOD & BEVERAGE AND MERCHANDISE PICK-UP
Currently, orders for food and beverages and merchandise pick-up require some form of receipt for pickup, which could entrail waiting in line and then having to wait for the actual order to be brought out. With VERIF-iD™, purchasers can be recognized faster through facial recognition when approaching their pickup stations at designated times, thereby eliminating the need for a receipt and expediting the time it takes for their order to be received.
In addition, facial recognition will allow attendees to access their accounts for loyalty and reward discounts as they scan their items. Individuals who are underage would be immediately flagged and unable to purchase age-limited products such as alcohol.
3.6.12 CLUB AND VIP LEVEL ACCESS
Venues need to have staff at multiple points of entry and, in most cases, only check tickets to make sure they match a club seat or private box before allowing them into the area. Additionally, many club or suite patrons borrow other members’ tickets to bring unregistered guests with them, thereby having no accountability who is actually in these secured areas.
With VERIF-iD™, manual checks are replaced with facial recognition access control points that ensure only patrons registered to be on the floor or in that area will be granted access. This ensures positive identification for security and safety purposes and reduces the required staff at each entry.
3.6.13 PRIVATE SUITE ENTRY
Most venues today do not provide any type of security into private suites, making it open for entry by anyone who is on the club or suite level unless doors are locked from within, making it inconvenient for guests and service providers to come and go as needed. While RFID cards give access control for providers, they are inconvenient to pass on to guests. Some venues offer barcode readers to unlock doors based on a suite ticket; however, they become inconvenient for temporary visitors and do not provide any actual identity of who is entering since tickets can be passed on to anyone already in the building.
With VERIF-iD™, venues will have facial recognition terminals installed outside every suite that can identify anyone who is authorized for entry, which unlocks the door. Door readers can also be set up to require a second form of verification for entry, such as scanning the actual ticket itself or tapping the associated credit card on file. This allows for higher security and accurate contact tracing when needed.
3.6.14 PRIVATE SUITE ORDERING
Suite administrators currently have to wait for their host to come into the suite to place additional orders, review physical menus and call orders in, or order off a mobile phone. Suite administrators do not always order things their guests want, making them feel uncomfortable requesting something additional.
Using VERIF-iD™ means that ordering could be directly used by authorized and identified individuals through interactive display wall panels within the suite. Guests would be allowed to place their own orders and have their account charged. In addition, temporary guests could place their own order while in their suite or for pick-up, and then directed to a pick-up counter on route back to their regular seats. A digital wall display could project a menu and timely specials for every one that would usually rely on individual text messages.
3.6.15 IN SEAT MOBILE ORDERING
While in-seat mobile ordering has become more popular, it still has the disadvantage of a required wait for in-seat delivery or standing in line at a concession or merchandise pick-up counter. With VERIF-iD™ , attendees purchasing goods in their seats will have reduced wait times when they arrive at the pick-up windows at specific times, because the biometric efficiencies of VERIF-iD™ will recognize them as they approach.
Engaging the attendees via frictionless, identity-based mobile activation at check-in, generates more data and revenue for the stakeholders prior to the gate. This rapidly and efficiently moves attendees from uncontrolled environments (outside) to controlled environments (inside), regardless of ticket format, reducing the venues overall security risk.
Once inside the venue, attendees come into contact with widely distributed points of presence (F&B, merchandise, suite and backstage access etc.), where based upon their purchase history and biometric identity, additional revenue and data are generated, wherein transaction logs are created that are accessible in real-time, which enhances security and supplies the facility for contract tracing, if needed after the event.
3.7 VENUE REVENUE
With IdBase, venue partners can reduce the number of staff required to work at an event with more efficient systems. Customer satisfaction would increase from venue partners having greater ability to utilize the IdBase infrastructure. Venues and their partners will now have more historical data of their customers preferences, as well as a timely engagement opportunity which they can use to create offers for food & beverages and merchandise, etc. increasing profitability and enhancing the overall fan experience.
3.8 PILOT SERIES
IdBase is engaging in a series of pilots aimed at scaling its infrastructure in the environments of 3 ticketing providers. Pilots will focus on integration with ticketing platforms and the expansion of other markets.
3.8.1 PATH TO PROOF OF CONCEPT (POC)
IdBase has successfully integrated the technologies of two global partners into its proven check-in authenTICKET platform, creating a proprietary infrastructure for ticketed live events and conferences. The path to POC includes the use of Aware’s biometric API and Regula’s documentation API, which are utilized hundreds of thousands, if not millions, of times daily which includes numerous government agencies. This significantly reduces the risk of not achieving a successful POC. It also puts IdBase in a very good position of security as we leverage our partners daily commitment and resources to protecting their government clients from AI threats, hacks, and security breaches. However, to reach this milestone, a series of Alpha and Beta pilots must be conducted, with each phase meeting critical success criteria.
Alpha Pilots: IdBase will initiate these pilots with the goal of achieving a 90% success rate after several tests, each involving up to 150 participants. Success will be measured by the number of check-ins that are "glitch-free." Since the Alpha pilots will be closely controlled, it will be easier to create fully managed events using our IdBase pilot app. The first pilot will include friends, family, and investors, utilizing Eventbrite’s standard API package for events. Once the pilot apps are thoroughly tested internally and meet the requirements of both Apple and Google app stores, events will be created on Eventbrite, directing participants to download the apps. A helpline will be available to ensure successful downloads and registrations before the event. IdBase will monitor participant activity and provide support to ensure successful registration. The apps will be tested at the venues hours before check-in to allow for the early detection of any unforeseen issues. Given that these are Alpha tests with a limited development team, IdBase anticipates encountering glitches related to various phone operating systems, which will be corrected as identified, resulting in fewer issues in subsequent pilots. We aim to achieve a 90% success rate within 3 to 5 pilots.
Beta Pilots: Beta pilots will initially be similar in scale, still using the IdBase pilot app, but with two key differences: a) participants will be external opt-ins and b) the procedures will be replicated at third-party events. However, these tests will remain within our ecosystem, utilizing Eventbrite. Participants attending other events will be invited to join our pilots via email, with incentives like a Starbucks (or similar) gift card offered after ticket purchase. Participants will be directed to Eventbrite, even if they already have a ticket to the event, to claim a free ticket (limited to the number of pilot participants) and download the app for registration. At the event, participants will be directed to a designated gate after they check-in on our mobile app, where their Eventbrite ticket will be scanned before their actual event ticket. Once scanned by us, they will receive the gift card, ensuring they complete the pilot. This process will require additional communication with participants, which will also be tracked for accuracy. The goal is to achieve a 95% success rate with 250-300 participants to attain our POC. All of this will be executed through the IdBase app.
These pilots will culminate in a single test at industry conferences that host tours and events as part of their program. IdBase has already secured agreements with two conferences in North America and two in the UK, contingent on successful Beta pilot results. The first conference pilot will generate significant exposure for the company, as participants who opt-in are likely to become future IdBase partners or clients. IdBase will also set up an exhibit booth at these conferences to maximize exposure and engage with participants before the pilot, accelerating the path to POC while minimizing the chance of issues.
3.8.2 PATH TO MINIMAL VIABLE PRODUCT (MVP)
The journey to MVP involves two critical milestones, laying the foundation for a scalable product.
Milestone 1: Successful integration with a ticketing company’s access control infrastructure at a participating venue. IdBase will use the same procedure as in the pilot app, but this time with actual purchased tickets. A temporary feature will be added to the app, allowing it to scan the attendee’s purchased ticket (or screen shot it), automatically recording seat information, or entering barcode data manually if a revolving barcode isn’t used. Regula has the ability to create a customized template for this for us. IdBase will request that the ticket company block all opt-in tickets, a standard function in all ticketing company systems. Since standard APIs also control the scanners, minimal work will be required for integration with our check-in process, allowing ample time for development and testing. As opt-in attendees approach the venue, our geofences will trigger a notification to check-in on our app using their biometrics. Once confirmed, our integration with the venues access control will release the block, allowing the scanner to successfully validate the event ticket. The combined data collected from both the ticketing company and IdBase will be used for a final assessment of the pilot’s success and to create accurate case studies for potential partners and clients.
Milestone 2: Successful integration into an external app for check-in. This could be any number of apps, from those of the ticketing company to those of the team or venue. Once we achieve 95% glitch-free pilots, our goal is to have ticketing partners begin the process of integrating our technology into their ticket purchasing process. As an added incentive, they will receive a royalty from us on every ticket sold, aside from responding to customer demand. Since all platforms should be functioning seamlessly on low volume (up to 500 participants), we anticipate the primary challenge will be managing the different mobile operating systems. This challenge will be addressed with the deployment of additional resources once further funding is secured. Achieving this milestone is necessary before ticketing companies allow us to go live with a fully integrated infrastructure. However, once a sufficient number of Milestone 2 pilots are completed with 99% accuracy, the company will have reached its MVP and can focus on scaling the platform for full deployment and commercial launch.
3.8.3 PATH TO COMMERCIALIZATION AND SCALABILITY
Over the next 12 months, IdBase will leverage its industry-wide database of 1,000 key industry contacts to scale up towards commercialization.
The first step will be continuation of industry conferences through strategic sponsorships. IdBase is in a unique position to sponsor conferences, which will, in turn, facilitate beta pilot opportunities. Conference attendees typically represent potential partners or clients for IdBase, providing invaluable feedback and data points to support our strategy. Sponsorship will also provide speaking opportunities, significantly increasing the company's visibility. Additionally, IdBase will benefit from a strong presence in the conference’s exhibition halls and eventually, pilot integrations within conference apps. With 6–10 key conferences across various industries scheduled over the next 12 months in the US, Europe, and Australia, these sponsorships will exponentially boost our exposure and give back valuable input from the pilots.
At the same time, we will complete our first full integration into a ticketing partner’s purchase flow, followed by further complete integrations with other ticketing companies. This will allow us to expand our pilot programs through existing relationships with venues, teams, and artists. Once fully integrated with a ticketing company, their entire customer base becomes our target audience. Additionally, the ticketing company’s sales force and customer service teams will help introduce IdBase to their clients, as both they and their clients stand to benefit from our revenue-sharing model.
To ensure efficiency, we will build two dedicated development teams: one focused on integration with ticketing companies purchase flows, and the other on access control and check-in app integrations.
Furthermore, we plan to strengthen our leadership team by bringing on a Chief Operating Officer, Chief Product Officer, and several mid-level directors to drive core growth and development, pushing the company toward full commercialization.
In parallel, we will be preparing for a potential public listing. As part of this effort, we’ll focus on investor relations (IR), particularly throughout our crowdfunding campaign and beyond to build a solid shareholder base.
We believe the necessary funding to achieve these goals estimated at $2.5 million will be secured through a successful crowdfunding campaign, which will provide us with a 12-month operational runway.
4 MARKET & INDUSTRY ANALYSIS
4.1 LIVE EVENT INDUSTRY
The live events industry size is expected to reach $1.553 trillion by 2028, registering a CAGR of 11.2% from 2021 to 2028. The corporate events and seminar segment held the major share of 27.7% in 20197 , contributing $314.7 billion. This segment is estimated to reach $454.6 billion by 2028, at a CAGR of 12.4% during the forecast period8 .
Events refer a public gathering of people at a determined time and place. The purpose for staging an event can be to increase business profibility, celebratory reasons, for entertaminent, and for community causes. The most popular events include conference & exhibitions, corporate events & seminars, promotion & fundraising, music & art performances, sports, festivals, trade shows, and product launches. The key stakeholders within the eents market are corporate organizations, public organizations and NGOs9 .
Events such as music concerts attract the majority of the popualtion, especially youth and middle-aged individuals, which boost the growth of the evetns industry size. A shift towards preference of artists and performers touring and holding music concerts has further driven the growth of the events industry10
Sports events have also become more commercialized in recent years, and serve as a significant marketing advertisement opportunity for event management companies which sponsor these events. Sponsorships from brands such as Redbull, Nike, and Cocoa Cola also boost industry growth. In addition, the deployment of best-in-class technology that can handle entire events, along with increase in infrastructural investment and technological upgradation, has propelled growth in the events industry.However, higher entry barriers and presence of alternatives present major challenges in the market11
The global events industry is segmented based on type, revenue source, organizer, age group, and region. Depending on type, the industry is furthered divided into music concerts, festivals, sports, exhibitions & conferences, coroproate events & seminar, and others. By revenue source, it is classified into ticket sales, sponsorships, and others. On the basis of organizer, it is categorized into coroproate, sports, education, entertainment, and others. As per age group, it is segregated into below 20 years, 21-40 years, and above 40 years.
4.1.1.1
TYPE
In 2019, based on type, the corporate events & seminars segment accounted for the maximum events industry share, owing to rise in number of coprorate companeisc oupled with frequent seminars and events conducted by them. In addition, seminars and events involve interaction between the speaker and their audience, thereby increasing the number of attendees12. In addition, the music concerts category is anticipated to grow at the highest CAGR of 13.1% during the forecast period13
By organizer, the entertainment segment was the highest contributor to the market, with $328.4 billion in 2019, and is estimated to reach $493.8 billion by 2028, at a CAGR of 12.5% during the forecast period14 .
4.1.1.3 REVENUE SOURCE
By revenue source, the sponsorship category garndered the highest share in 2019 at 46.1%, due to the unlimited opportunities organizers found to broaden their competitve advantage. Moreover, sponsoring an event increases reach among potential buyers and customers, further driving sales15. This segment contributed $523.7 billion in 2019, and is estimated to reach $767.0 billion by 2028, at a CAGR of 12.5% during the forecast period16
On the basis of age group, the 21-40 years segment contributed to the maximum share in 2019 at 43.1%, owing to the rise in interest toward entrepreneur & business seminars along with music conerts and festive gatherings17. This segment contirubted $489.8 billion to the market in 2019, and is estimated to reach $735.2 billion by 2028, at a CAGR of 12.8% during the forecast period18 .
Region wise, Europe account for the highest revenue in 2019, holding the major share at 36.9%. This region has been extremely successful in winning conferences of international associations, with over half of the top cities and countries selected as destinations for international association conferences19. The European market accounted for $419.0 billion 2019, and is estimated to reach $498.5 billion by 2028, with a CAGR of 9.9%20
4.1.2 KEY PLAYERS
Key industry players include Live Nation, AEG, Oak View Group, Ticketmaster, ASM Global, CTS Eventim, Seatgeek, StubHub, and Cvent.
4.2 ONLINE EVENT TICKETS
Online ticketing gained popularity due to the proliferation of smartphones and mobile devices, resulting in the perceived ease and flexibility in buying event tickets. Service providers are developing user-friendly and attractive mobile interfaces, resulting in easier and faster booking of tickets21. The Event Tickets segment includes the sale of tickets for sporting and music events purchased online, as well as cinema tickets. Paid reservations and digital tickets that can be scanned via QR codes are also included. Tickets for museums, theatres, cabarets, or comedy clubs are not included.
The fastest growth market in the online event tickets industry is the Asia Pacific market, and the largest market is North America. The Online Event Ticketing Market was valued at US$28.49 billion in 2021, and is expected to reach US$1,965.99 billion by 2028, registering a CAGR of 7.52% during the period of 2022202722 .
During this time, ticketing companies are trying to streamline their internal and external processes. A persistent theme at the Ticket Business Forum 2022 and INTIX 2023 explored the idea of tapping into ticketing data23 .
Ticket platforms and event organizers can also incorporate visitor screening and contact tracing into their event planning. By collecting this information directly through the event registration system, ticketing platforms can meet local regulations and improve event safety24 .
Globally, most revenue will be generated in the United States, with a projected US41.43 billion in 202425 In 2024, the average revenue per user (ARPUR) in the Event Tickets segment is projected to be USD$237.30. The number of users is expected to amount to 183.9 million by 2028. Ticket users are counted as the active purchasers of the event tickets, independent of the number of tickets bought.
The Event Ticket market already has high adoption rates, and a further shift to mobile ticket purchasing via ticketing applications is expected. A few key players dominate the market, such as Ticketmaster, Eventbrite, CTS Eventim and Damai, and large online providers frequently combine primary and secondary
ticket marketplaces in order to increase their inventory. Potential growth stoppers in this industry are the widespread sale of fake and duplicate tickets, as well as secondary ticket price speculation26 .
In Canada, the revenue of the live event tickets segment for online ticket sales is projected to reach USD$2.32 billion in 2024 and is expected to show an annual growth rate of 7.20% from 2022-2026, resulting in a projected market volume of 2.91 billion by 2026. The revenue change in 2022 was 153.2%, showing a recovering market since the pandemic began. These figures do not represent tickets purchased at the event. This segment is expected to show a revenue growth of 14.8% in 2023. The market’s largest segment is Sports Events with a projected market volume of US$1.05bn in 2024. The average revenue per user in this segment is projected to amount to US$253.50 in 2024, and the number of users is expected to amount to 11.4m by 2026. User penetration in the Event Tickets segment will be at 23.4% in 202427
The market’s largest segment is Sport Events, with a projected market volume of USD$1.05 billion in 2024.
4.2.2 UNITED STATES
In the United States, revenue in the Event Tickets segment is projected to reach US$36 26 billion in 2024 and is expected to show an annual growth rate (CAGR 2022-2026) of 7.34%, resulting in a projected market volume of US$40.57 billion by 2028. This segment is expected to show a revenue growth of 14.5% in 2023. The market’s largest segment, Sport Events, had a projected market volume of US$12.44 billion in 2022. The ARPU in the United States is projected to amount to US$216.28 in 2022, and the number of users is expected to be 143.5 million by 2026. User penetration in the Event Tickets market will be at 33.5% in 2024.
4.2.3 SPORTS EVENTS
Globally, the revenue in the Sports Events segment is projected to reach US$27.62bn in 2024 Revenue is expected to show an annual growth rate (CAGR 2022-2026) of 3.86%, resulting in a projected market volume of US$32.14bn by 2026. In the Sport Events segment, the number of users is expected to amount to 317.7m by 2026. User penetration will be 4.0% in 2022 and is expected to hit 4.0% by 2026. The average revenue per user (ARPU) is expected to amount to US$89.91. In global comparison, most revenue will be
generated in the United States, which hit US$12.4bn in 2022. With a projected rate of 17.1%, the user penetration in the Sport Events segment is highest in Luxembourg28 .
The online sale of Sport Event tickets has gone up considerably in the last years, with VIP and season tickets generating a major share of total revenue. Since online sales of these tickets are still low compared to offline channels, this segment holds high growth potential. With the increase of ticket prices becoming an issue for consumers, the segment is likely to move to a subscription-based business model in the upcoming years, with memberships replacing season tickets and subscriptions replacing general admission ticket sales29
4.2.3.1 CANADA
In Canada, revenue in the Sports Events segment is projected to reach US$1.04bn in 2022 and is expected to show an annual growth rate of 4.85% from 2022-2026, resulting in a projected market volume of US$1.26bn by 2026. The Canadian Sports Events segment is expected to have 4.6m users by 2026, with the ARPU expecting to amount to $US243.20. User penetration will be 11.6% in 2022 and is expected to hit 11.7% by 202630 .
4.2.3.2
UNITED STATES
▪ Revenue in the Sport Events segment is projected to reach US$13.09bn in 2023.
▪ Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 2.43%, resulting in a projected market volume of US$14.41bn by 2027.
▪ In the Sport Events segment, the number of users is expected to amount to 44.90m users by 2027.
▪ User penetration will be 13.0% in 2023 and is expected to hit 13.0% by 2027.
▪ The average revenue per user (ARPU) is expected to amount to US$298.80.
▪ In a global comparison, most revenue will be generated in the United States (US$13,090.00m in 2023).
In 2022, sports fans worldwide spent more than $27bn buying tickets to watch sports matches live at stadiums. Although tickets to major events can be expensive and hard to get, total spending in the sports events market continues to surge. This is the highest value the market has ever seen. This figure is forecast to grow by over one billion dollars in 2023 and hit almost $29 billion worldwide.
According to data presented by CasinosEnLigne.com, sports ticket sales are expected to bring almost $29bn in revenue this year, or 6% more than in 2022.
“ authenTI ET™ is a giant leap forward in protecting the consumer, the artist, the team owner, the venue operators and promoters.”
• Ralph Marchetta, Regional VP Live Entertainment, ASM
The Music Events segment consists of the sale of online tickets for all music-related events, including concerts, festivals, musicals, music shows, and operas. This segment shares a prominent share in the online ticketing market, since it includes lucrative sales for all music-related events such as concerts, festivals, musicals, music shows, and operas. Ticketmaster stated that music accounted for about 80% of their gross transaction value (GTV) growth in recent years. With the rise of music aspirants, talent shows, and streaming services for artists, concerts are the primary source of income for online ticketing providers. Even with tickets becoming more expensive, data indicates customers will still pay these costs, as user numbers continue to grow31
The revenue of the Music Events segment in Canada is projected to reach US$940Million in 2024. Revenue is expected to show an annual growth rate of 10.55% from 2022-2026, resulting in a projected market volume of US$1.3b by 2026. In this segment, the number of users is expected to amount to 8.5 million by 2026. User penetration will be 17% in 2024 and is expected to hit 16.6% by 2028. The average revenue per user (ARPU) is expected to amount to US$142.10. In global comparison, most revenue will be generated in the United States (US$16.98b in 2024). With a projected rate of 25.8%, the user penetration is highest in Denmark32
Ticketmaster, the number one online ticketing platform globally, stated that music has accounted for around 80% of their Gross Transactional Value (GTV) growth in recent years. With the rise of music streaming services for artist, concerts have become their main source of income. As tickets become more expensive, so are the costs associated with hosting a concert. The growing user numbers indicate that despite the constant price raises, and the widespread amount of fake and duplicate tickets, customers are still willing to pay more for music events.33
4.2.5 COMPETITIVE LANDSCAPE FOR TICKETING PROVIDERS
The online event ticket market complies of several global and regional players competing in a fairly contested market space The move to mobile ticketing has lessened the barriers to entry for new players as many have emerged However, in North America, Ticketmaster controls roughly 70%34 of the market. This is largely due to a model that allows for exclusivity at venues which ticket companies can compete for. Since Ticketmaster’s parent company is Live Nation (the world’s largest concert promoter) that provides content to the venues, they have a distinct advantage in obtaining these exclusive rights where concerts are held
Outside North America, most other countries follow a model of multiple ticketing companies selling the same event The ticket company with the venue contract usually does not receive more than 30% of allocated tickets to sell for an event, while many others are allocated the balance. This could be anywhere between 2-10 additional companies. This allows for more competition between existing companies and
easier entry for new. Since IdBase is not a ticketing service provider, but partners with them, we have greater opportunities to partner being an agnostic provider.
Major players include: ▪
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4.3 SECONDARY TICKET MARKET OVERVIEW
Valued at USD$15510.55 million in 2020, the Global Secondary Ticket Market is expected to reach USD$2792.5 million by 2027, with a CAGR of 9.3% during the forecast period35
Also known as the resale market, the Secondary Ticket Market refers to a platform where previously purchased tickets are resold to other consumers through various means. Tickets for events including concerts, sporting games, and theatres, are often bought in bulk and resold at a higher rate. The Global Secondary Ticket Market has gone through some unprecedented changes over the last few years. Previously, tickets would be resold locally, but the introduction of online ticket market platforms has changed the way tickets are resold globally. The rising usage of the internet through laptops, tablets, and smartphones has significantly contributed to market growth by making it flexible and easy for consumers to purchase tickets36 .
Over the last few years, the global secondary ticket market has gone through some unprecedented changes. Previously, resales were local, but the introduction of online ticket resale market platforms has changed how tickets are resold globally. The rising usage of the internet has significantly contributed to the growth of the secondary ticket market. The use of laptops, tablets, and smartphones has made it flexible and user-friendly for customers to buy tickets.
4.3.1 DRIVING FACTORS
Major driving factors for the secondary ticket market include the increase of consumer disposable income, lifestyle changes, and rising spending on entertainment. According to the United States Bureau of Labour Statics, the average annual expenditure of an American on entertainment was USD$2,827, or 5.6% of the total expenditure. The promotion of sports tournaments, stand-up comedy shows, movies, and music concerts have also contributed to market growth. Moreover, high-profit returns have created major competitiveness in the secondary ticket market. This has increased the need among various service providers to form long-term contracts with production houses, sports authorities, theatres, and local event planners37 .
The potential of high-profit returns has created major competitiveness in the secondary ticket market. Consequently, this has increased the need for service providers to form long-term contracts with production houses, sports authorities, theatres, and local event planners.
4.3.2 MARKET SEGMENTATION
The global secondary ticket market is segmented as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Among these, North America accounted for the major share of the market in 2020 and is expected to show similar growth trends in the upcoming years due to their presence of the largest entertainment and media industry globally.
The European market is expected to observe high revenue growth in the upcoming years. Sporting events are gaining traction due to the rising popularity of soccer among Europeans, and the increasing number of musicians has led to a rising demand for live concerts. Secondary ticket purchasing platforms are extensively adopted for live events, movies, and sporting events, with sporting events holding a prominent share in the market.
The Asia-Pacific region is also experiencing a high growth trend in the global secondary ticket market, with China as the major contributor along with Japan, South Korea, and India. The growth of this region is attributed to the rapid improvement in technology. For example, rich graphics, animation, and precision techniques in Chinese movies are attracting more viewers. The growing popularity of K-pop has also contributed substantially to the growth of the secondary ticket market in this region38
There is currently no other company that works in the way that IdBase does. While there are companies that use biometric data for entry on mobile devices and kiosks, most do not have frictionless entry No other platform works as seamlessly and efficiently as IdBase with its use of authenTICKET™ and VERIFiD™ VERIF-iD™ is also the only biometrics platform in live events that allows a user to opt-out of facial recognition, in place of their voice for checking-in after they have remotely enrolled and verified their identity details against a documentation check.
When venues have attempted to go mobile-only, there have been major delays and issues that frustrate customers. IdBase operates more like airlines, where individuals have options between using paper or mobile tickets, and each method can be verified with identification prior to the entry gate. The only restraint is that IdBase must be integrated with a ticketing infrastructure provider, and IdBase’ executive team and widely covered industry relationships are focused with getting them on board. There are many providers that IdBase is able to integrate and connect with.
5.2 VALUE PROPOSITION
IdBase provides value for venues with a more efficient identity authentication platform process, increased security, and obtaining accurate data. By attaching an identity to each ticket, venues will know who is actually attending their events that they can use to target additional offers and services to. By streamlining the food ordering and p/u services, patrons will be incentivized to spend more money during an event. Additionally, increased conveniences on ancillary services such as access control, f & b and merchandise purchases, parking, etc., will ultimately provide a better overall fan experience.
Each ticket has an individual identity attached to it INCREASED SECURITY
INCREASED REVENUE TO VENUES
The increased customer satisfaction and ease of purchasing and ordering will increase revenue
VALUABLE DATA OBTAINED
Venues can gain data about who is attending their events and their flow of movement
STRATEGIC PARTNERSHIPS
The Company has partnerships with companies like Aware, Regula, and Tickets.com
ESTABLISHING “ IRST-TO-MARKET” IS WHAT SETS IDBASE APART FROM ALL OTHERS. ONCE IDBASE HAS SIGNED ON ITS FIRST TICKETING PARTNERS AND VENUE CLIENTS TO ITS GLOBAL IDENTITY AUTHENTICATION NETWORK, THERE IS NO NEED FOR A SECOND NETWORK. HENCE, COMPETITION IS ELIMINATED.
5.3 PROFILE OF COMPETITORS
authenTICKET™ does not have a direct competitor. The Company does not compete with venues or ticketing companies but rather integrates their platform with them. IdBase’ proprietary infrastructure layer enables data capture and verification where it either does not exist or is incomplete and can be used with multiple formats. While other competitors use some form of identity-based access control, they are lacking in many other areas IdBase is not.
5.4 COMPETITIVE ADVANTAGE
The live events industry has been trying to introduce biometrics into their platforms; however, they have encountered 3 major obstacles: the negative connotation facial recognition maintains, inadequate technology, and costs. Many individuals do not like the concept of facial recognition, particularly if it is mandatory and there is no opt-out option. They may see no benefit to its use and could forgo going to events because of it. IdBase combats this by providing users with the option to opt-out of facial recognition in favour of voice recognition, which feels much less invasive. Current business models also have huge up-front costs along with annual licence storage fees and per-use royalties, which to do work for the industry. IdBase has partnered with a global biometrics company that shares a royalty with them. Being a 3rd party provider gives IdBase a political strategic advantage of not being tied into any unfair monopolistic practices or giving one company and advantage over another.
5.5 NETWORKING
IdBase intends to leverage over 1,000 relationships developed throughout its pre-launch phase to ensure business success after their Pilots Series. The companies’ relationships and those of its advisors and employees have proved invaluable in bringing the attention of the leading companies in each of the target markets. IdBase will continue to work with venues and ticketing platforms, as once their services are integrated, they gain all the customers these businesses already have.
Works with exis ng cke ng and venue s infrastructure
Patent Pending IP with experienced BOD
Agnos c pla orm that works with all cket formats
First to market with over 1,000 industry rela onships
Remote biometric iden ty enrolment with opt out of face for voice
Create a global iden ty authen ca on network for cketed live events
Recaptures lost data and revenue back to the industry
Eliminates cket bots and unfair advantages of cket scalpers when purchasing ckets
eaknesses
Threats
Needs to be integrated with the venues exis ng cke ng and access control infrastructure
Legislatures enac ng laws restric ng venue rules
Extra steps of enrolment and checking in perceived as consumer fric on
“ The ticketing industry is broken. idBase Technologies has the solutionthatcanchangetheindustry,returningcontroltotheartists, promoters and venues without making purchasing tickets or attending events more difficult to the fans. It’s been a long time coming!”
— Caley Denton, Head of Ticketing & Consumer Marketing
Strengths Opportuni es
5.7 POTENTIAL FUTURE OPPORTUNITIES
As IdBase builds up its Global Identity Authentication Network, other industries and businesses will approach the Company to build out similar platforms customized for their own needs based on the already accumulated identity database. A new business model could exist whereby the Company licences a different platform in exchange for an annual fee thereby not relying on the same per-ticket fee model. Possible applications are infinite!
As an example, rather than a Manhattan office tower requiring a company tenant meeting guest, to produce their ID at the security desk upon entry of the building to be manually typed into a system matched up with the company’s invited name, and photo taken for a badge and access, the Company could have the invited guest enrol prior to attending (that is if they are not already enrolled from a previous live event or conference). Once they arrive near, at, or into the building, they could receive a mobile notification that instructs them to use their face to check-in prior to the security desk. That could produce a QR code that could easily be self-scanned when they arrive at the desk. The invited guest’s profile including photo could then be accessed by the security personal on their computer monitor, matched, and badge printed allowing a much simpler and faster process. More importantly, their ID would have been previously checked on enrolment, which is something a simple security check of a document could not possibly do and easily forged.
6.1 ASSUMPTIONS
6 FINANCIAL PROJECTIONS
• Note that all financial information is in USD.
REVENUE ASSUMPTIONS (USD)
ONGOING BUSINESS EXPENSES (USD)
6.3 USE OF
IdBASE CAPITAL REQUIREMENTS (USD)
Financing Rounds Year
SUMMARY (USD)
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
$(10,000,000)
TOTAL REVENUES & OPERATING INCOME Total Revenues Operating Income (EBITDA)
