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Jun 11, 2020 · 24m · top-founders

Festival Version of ClassPass Targeting $500k Seed, 1000's of Consumers, 100's of Events

Ed Vincent · 15m spoken Nathan Latka · 6m spoken
0:00 / 0:00

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In this interview, Nathan Latka speaks with FestivalPass founder Ed Vincent about building a credit-based subscription marketplace for live events, exploring the startup's unit economics, media distribution partnerships, and capital-efficient seed fundraising strategy.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 30% of the talking time here. How this is scored →

Nathan as informed peer 4.6 Guest teaching 2.9 Guest disagreement 1.5 Nathan pushing back 3.1
05100:0010:0020:002:21–5:40 · Nathan as informed peer 4/10 The FestivalPass Business Model and Unit Economics Latka explores the subscription marketplace mechanics and prompts Vincent for concrete examples like South Beach Food and Wine to understand gross margin economics. Vincent explains how their credit model targets a 30% gross margin.5:40–9:12 · Nathan as informed peer 5/10 Tiered Pricing Structure and Dynamic Credit Allocation Latka breaks down the credit pricing arbitrage spread from the $9/month tier to the $99/month plan. Vincent clarifies that the core innovation is backend reverse dynamic pricing per user rather than static plan changes.9:12–12:04 · Nathan as informed peer 5/10 Event Margins, Loss Leaders, and Early Consumer Traction Latka presses Vincent to pin down actual paid consumer metrics rather than vanity signups, forcing a realistic baseline of under 1,000 paid subscribers. Vincent candidly accepts the framing and details their early promotional campaigns.12:05–15:33 · Nathan as informed peer 8/10 Supply Aggregation and Big Media Event Partnerships Latka strongly challenges Vincent's assertion that revenue-based financing from providers like ClearBank is 'low-cost debt', breaking down how 2% monthly fees amount to a 24% APR. Vincent resists the 24% figure, insisting credible companies can secure 6-12% rates.15:33–18:16 · Nathan as informed peer 6/10 Subscription LTV, Payback Economics, and Debt Constraints Latka points out the structural issue that lenders require historical cohort data that an early-stage marketplace lacks without equity covenants. Vincent acknowledges this reality and outlines his backup plan of strategic media partner capital.18:16–20:24 · Nathan as informed peer 4/10 Building a Global Remote Team and Offshore Agencies Latka inquires into team composition and offshore agency costs, and Vincent details his distributed engineering and design setup across Detroit, Lisbon, and Bali.20:25–23:12 · Nathan as informed peer 5/10 Event Scraping Strategy and Organic Inbound CRM Latka suggests an aggressive growth tactic of scraping big media events and arbitrating ticket sales, but Vincent educates him on his nuanced approach of scraping 8,000 smaller events for an automated CRM funnel while preserving enterprise relationships.23:12–23:57 · Nathan as informed peer 0/10 Interview Recap and Final Takeaways Latka delivers a rapid summary monologue recapping FestivalPass's unit economics, pricing structure, team distribution, and upcoming seed round closing.2:21–5:40 · Guest teaching 3/10 The FestivalPass Business Model and Unit Economics Latka explores the subscription marketplace mechanics and prompts Vincent for concrete examples like South Beach Food and Wine to understand gross margin economics. Vincent explains how their credit model targets a 30% gross margin.5:40–9:12 · Guest teaching 4/10 Tiered Pricing Structure and Dynamic Credit Allocation Latka breaks down the credit pricing arbitrage spread from the $9/month tier to the $99/month plan. Vincent clarifies that the core innovation is backend reverse dynamic pricing per user rather than static plan changes.9:12–12:04 · Guest teaching 3/10 Event Margins, Loss Leaders, and Early Consumer Traction Latka presses Vincent to pin down actual paid consumer metrics rather than vanity signups, forcing a realistic baseline of under 1,000 paid subscribers. Vincent candidly accepts the framing and details their early promotional campaigns.12:05–15:33 · Guest teaching 2/10 Supply Aggregation and Big Media Event Partnerships Latka strongly challenges Vincent's assertion that revenue-based financing from providers like ClearBank is 'low-cost debt', breaking down how 2% monthly fees amount to a 24% APR. Vincent resists the 24% figure, insisting credible companies can secure 6-12% rates.15:33–18:16 · Guest teaching 3/10 Subscription LTV, Payback Economics, and Debt Constraints Latka points out the structural issue that lenders require historical cohort data that an early-stage marketplace lacks without equity covenants. Vincent acknowledges this reality and outlines his backup plan of strategic media partner capital.18:16–20:24 · Guest teaching 3/10 Building a Global Remote Team and Offshore Agencies Latka inquires into team composition and offshore agency costs, and Vincent details his distributed engineering and design setup across Detroit, Lisbon, and Bali.20:25–23:12 · Guest teaching 5/10 Event Scraping Strategy and Organic Inbound CRM Latka suggests an aggressive growth tactic of scraping big media events and arbitrating ticket sales, but Vincent educates him on his nuanced approach of scraping 8,000 smaller events for an automated CRM funnel while preserving enterprise relationships.23:12–23:57 · Guest teaching 0/10 Interview Recap and Final Takeaways Latka delivers a rapid summary monologue recapping FestivalPass's unit economics, pricing structure, team distribution, and upcoming seed round closing.2:21–5:40 · Guest disagreement 1/10 The FestivalPass Business Model and Unit Economics Latka explores the subscription marketplace mechanics and prompts Vincent for concrete examples like South Beach Food and Wine to understand gross margin economics. Vincent explains how their credit model targets a 30% gross margin.5:40–9:12 · Guest disagreement 1/10 Tiered Pricing Structure and Dynamic Credit Allocation Latka breaks down the credit pricing arbitrage spread from the $9/month tier to the $99/month plan. Vincent clarifies that the core innovation is backend reverse dynamic pricing per user rather than static plan changes.9:12–12:04 · Guest disagreement 1/10 Event Margins, Loss Leaders, and Early Consumer Traction Latka presses Vincent to pin down actual paid consumer metrics rather than vanity signups, forcing a realistic baseline of under 1,000 paid subscribers. Vincent candidly accepts the framing and details their early promotional campaigns.12:05–15:33 · Guest disagreement 4/10 Supply Aggregation and Big Media Event Partnerships Latka strongly challenges Vincent's assertion that revenue-based financing from providers like ClearBank is 'low-cost debt', breaking down how 2% monthly fees amount to a 24% APR. Vincent resists the 24% figure, insisting credible companies can secure 6-12% rates.15:33–18:16 · Guest disagreement 2/10 Subscription LTV, Payback Economics, and Debt Constraints Latka points out the structural issue that lenders require historical cohort data that an early-stage marketplace lacks without equity covenants. Vincent acknowledges this reality and outlines his backup plan of strategic media partner capital.18:16–20:24 · Guest disagreement 1/10 Building a Global Remote Team and Offshore Agencies Latka inquires into team composition and offshore agency costs, and Vincent details his distributed engineering and design setup across Detroit, Lisbon, and Bali.20:25–23:12 · Guest disagreement 2/10 Event Scraping Strategy and Organic Inbound CRM Latka suggests an aggressive growth tactic of scraping big media events and arbitrating ticket sales, but Vincent educates him on his nuanced approach of scraping 8,000 smaller events for an automated CRM funnel while preserving enterprise relationships.23:12–23:57 · Guest disagreement 0/10 Interview Recap and Final Takeaways Latka delivers a rapid summary monologue recapping FestivalPass's unit economics, pricing structure, team distribution, and upcoming seed round closing.2:21–5:40 · Nathan pushing back 2/10 The FestivalPass Business Model and Unit Economics Latka explores the subscription marketplace mechanics and prompts Vincent for concrete examples like South Beach Food and Wine to understand gross margin economics. Vincent explains how their credit model targets a 30% gross margin.5:40–9:12 · Nathan pushing back 2/10 Tiered Pricing Structure and Dynamic Credit Allocation Latka breaks down the credit pricing arbitrage spread from the $9/month tier to the $99/month plan. Vincent clarifies that the core innovation is backend reverse dynamic pricing per user rather than static plan changes.9:12–12:04 · Nathan pushing back 4/10 Event Margins, Loss Leaders, and Early Consumer Traction Latka presses Vincent to pin down actual paid consumer metrics rather than vanity signups, forcing a realistic baseline of under 1,000 paid subscribers. Vincent candidly accepts the framing and details their early promotional campaigns.12:05–15:33 · Nathan pushing back 7/10 Supply Aggregation and Big Media Event Partnerships Latka strongly challenges Vincent's assertion that revenue-based financing from providers like ClearBank is 'low-cost debt', breaking down how 2% monthly fees amount to a 24% APR. Vincent resists the 24% figure, insisting credible companies can secure 6-12% rates.15:33–18:16 · Nathan pushing back 5/10 Subscription LTV, Payback Economics, and Debt Constraints Latka points out the structural issue that lenders require historical cohort data that an early-stage marketplace lacks without equity covenants. Vincent acknowledges this reality and outlines his backup plan of strategic media partner capital.18:16–20:24 · Nathan pushing back 2/10 Building a Global Remote Team and Offshore Agencies Latka inquires into team composition and offshore agency costs, and Vincent details his distributed engineering and design setup across Detroit, Lisbon, and Bali.20:25–23:12 · Nathan pushing back 3/10 Event Scraping Strategy and Organic Inbound CRM Latka suggests an aggressive growth tactic of scraping big media events and arbitrating ticket sales, but Vincent educates him on his nuanced approach of scraping 8,000 smaller events for an automated CRM funnel while preserving enterprise relationships.23:12–23:57 · Nathan pushing back 0/10 Interview Recap and Final Takeaways Latka delivers a rapid summary monologue recapping FestivalPass's unit economics, pricing structure, team distribution, and upcoming seed round closing.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 61.2% · guest 38.8%0:00 · Nathan 61.2% · guest 38.8%3:00 · Nathan 21.2% · guest 78.8%3:00 · Nathan 21.2% · guest 78.8%6:00 · Nathan 15.9% · guest 84.1%6:00 · Nathan 15.9% · guest 84.1%9:00 · Nathan 24.8% · guest 75.2%9:00 · Nathan 24.8% · guest 75.2%12:00 · Nathan 24.2% · guest 75.8%12:00 · Nathan 24.2% · guest 75.8%15:00 · Nathan 19.8% · guest 80.2%15:00 · Nathan 19.8% · guest 80.2%18:00 · Nathan 36.7% · guest 63.3%18:00 · Nathan 36.7% · guest 63.3%21:00 · Nathan 37.5% · guest 62.5%21:00 · Nathan 37.5% · guest 62.5%24:00 · Nathan 0% · guest 0%24:00 · Nathan 0% · guest 0%
Sharpest disagreement ▶ 15:01 Guest defends low-cost debt expectations

Vincent directly pushes back on Latka's 24% APR calculation, insisting he can obtain 6% to 12% debt capital based on proper KPI metrics.

 Hardest push from Nathan ▶ 14:47 Host refuses low-cost growth financing premise

Latka forcefully rejects Vincent's characterization of growth debt as cheap, breaking down how a 2% monthly fee translates to a steep 24% annual rate.

 Biggest teaching moment ▶ 20:57 Guest reveals 8,000 scraped event CRM funnel

When Latka suggests scraping events to force partnerships, Vincent explains he has already scraped 8,000 events into an automated claiming CRM while intentionally protecting top-tier relationships.

 Nathan holds their own ▶ 14:47 Host calculates effective APR on revenue debt

Latka demonstrates deep domain expertise regarding alternative financing providers, explaining exact term structures and APR calculations to counter the guest's assumptions.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
The FestivalPass Business Model and Unit Economics 4312 Latka explores the subscription marketplace mechanics and prompts Vincent for concrete examples like South Beach Food and Wine to understand gross margin economics. Vincent explains how their credit model targets a 30% gross margin.
Tiered Pricing Structure and Dynamic Credit Allocation 5412 Latka breaks down the credit pricing arbitrage spread from the $9/month tier to the $99/month plan. Vincent clarifies that the core innovation is backend reverse dynamic pricing per user rather than static plan changes.
Event Margins, Loss Leaders, and Early Consumer Traction 5314 Latka presses Vincent to pin down actual paid consumer metrics rather than vanity signups, forcing a realistic baseline of under 1,000 paid subscribers. Vincent candidly accepts the framing and details their early promotional campaigns.
Supply Aggregation and Big Media Event Partnerships 8247 Latka strongly challenges Vincent's assertion that revenue-based financing from providers like ClearBank is 'low-cost debt', breaking down how 2% monthly fees amount to a 24% APR. Vincent resists the 24% figure, insisting credible companies can secure 6-12% rates.
Subscription LTV, Payback Economics, and Debt Constraints 6325 Latka points out the structural issue that lenders require historical cohort data that an early-stage marketplace lacks without equity covenants. Vincent acknowledges this reality and outlines his backup plan of strategic media partner capital.
Building a Global Remote Team and Offshore Agencies 4312 Latka inquires into team composition and offshore agency costs, and Vincent details his distributed engineering and design setup across Detroit, Lisbon, and Bali.
Event Scraping Strategy and Organic Inbound CRM 5523 Latka suggests an aggressive growth tactic of scraping big media events and arbitrating ticket sales, but Vincent educates him on his nuanced approach of scraping 8,000 smaller events for an automated CRM funnel while preserving enterprise relationships.
Interview Recap and Final Takeaways 0000 Latka delivers a rapid summary monologue recapping FestivalPass's unit economics, pricing structure, team distribution, and upcoming seed round closing.

Statements from this episode (12)

Disclosure
Ed Vincent Worked as a Data Contractor for MoviePass
“I was a contractor brought in to help them with their data,”
Ed Vincent Jun 11, 2020 ▶ 2:11
Assertion Not checkable as stated
Most Live Event Venues Only Know 1 in 10 Audience Members
“Only one in 10 in venues, most venues, they only know one in 10 people in the audience.”
Ed Vincent Jun 11, 2020 ▶ 3:49
Disclosure
FestivalPass Targets a 30% Average Gross Margin Across Live Events
“So our average gross margin across all events, I'm not going to specifically talk about each event itself, is we target a 30% gross margin.”
Ed Vincent Jun 11, 2020 ▶ 5:17
Insight
Credit Subscriptions Enable Marketplaces to Implement Reverse Dynamic Pricing
“From a business perspective, what gets really interesting about this whole credit model, and I'm still shocked that more marketplaces and subscription businesses haven't adopted it, and I give ClassPass a lot of credit for pioneering the way, is what it allows…”
Ed Vincent Jun 11, 2020 ▶ 8:09
Assertion Contradicted
80% of Festival Ticket Inventory Goes Unsold Across the Industry
“However, if you look at the collection of thousands of festivals, 80% of them go unsold.”
Ed Vincent Jun 11, 2020 ▶ 9:40
Disclosure
Vincent: FestivalPass media partners control tens of millions of emails
“So we have some media partners that have tens of millions of emails that they're going to use on our behalf as we go into 2020 to engage on a local level to drive people.”
Ed Vincent Jun 11, 2020 ▶ 10:51
Assertion Supported
Latka: ClearBank Revenue Financing Carries an Effective APR of 24%
“So a deal from ClearBank is going to look something like one X your monthly revenues on a two month Term with an interest rate of two percent per month, right? I mean, and that's on the bottom side. That's a 24% APR essentially. That's expensive.”
Nathan Latka Jun 11, 2020 ▶ 14:49
Assertion Partly supported
ClearBank and Braavo Offer Debt Capital at 6% to 12% Rates
“Some of the ones I mentioned, like a ClearBank or a Bravo or others, do fall in that with credible companies that have proper KPI metrics.”
Ed Vincent Jun 11, 2020 ▶ 15:25
Insight
Why Financing Providers Cannot Help Bootstrapped Startups Lacking Unit Economics
“Is this is why a lot of these companies, these providers can't be helpful to bootstrap SaaS or even marketplace founders is you just don't have historical economics built out.”
Nathan Latka Jun 11, 2020 ▶ 16:40
Assertion Not checkable as stated
Bali-Based Design Agencies Cost Half of North American Rates
“I mean, it still costs money, but probably at half the cost you would pay in North America.”
Ed Vincent Jun 11, 2020 ▶ 19:30
Disclosure
Vincent Avoids Scraping iHeartMedia Events to Preserve Strategic Corporate Relationships
“So I, I've known the IR folks for a long time, and I have a deep relationship with their corp, corp dev and venture group, so I just don't want to quote, unquote, piss them off.”
Ed Vincent Jun 11, 2020 ▶ 21:02
Disclosure
FestivalPass Scraped 8,000 Events to Populate Its Platform Database
“We did scrape about 8000 events that we actually have in our database, and we actually produce on our platform.”
Ed Vincent Jun 11, 2020 ▶ 21:12
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