What is Downside Protection?
We know it is tough to maintain margins, forecast around unpredictable cashflow, and grow your business without taking irresponsible risks. These issues are only compounded by the extended inactivity due to COVID-19. Not only do we provide event funding to kickstart your reopening, but our Downside Protection programs are designed to make sure that a single event loss or cancellation doesn’t pose an existential threat to your business, but is just a small bump in the road to recovery and future growth.
Single Event Losses
We get it – losses happen. In the grand scheme of things, single event losses should be no big deal. But their unpredictability and immediacy can have serious consequences when it comes to forecasting and cash management. We don’t think an underperformance today should put future shows at risk. EventFund will cover the immediate loss from an unprofitable event, allowing you to amortize it over time. Occasional losses don’t impact your ability to get future shows funded, and there is no penalty or interest charged against the loss. For example, if an event we finance loses $10k, we will simply adjust the revenue share from future profitable events a bit until the $10k is recouped.
As live events begin to return, insurance companies perceive an elevated risk and have begun denying coverage, creating large exclusions, or imposing high deductibles on their event cancellation policies. EventFund partners with your ticketing company to collect a negligible surcharge from your consumers; this surcharge is deposited (along with those from all of our other partners) into an account we lovingly refer to as the “oh shit” account. We are effectively self-insuring against unexpected cancellations at no cost to you. This means that in the case of qualified cancellations, EventFund will cover the loss or insurance deductible at no cost to you.
Our Downside Protection programs are designed to give you peace of mind so you can focus on growing your business responsibly. If you think you’re a good fit for EventFund, apply here. If you have any questions, contact us and we’ll get back to you within 24 hours!