The Challenges of Live Event Financing: Q&A With AAA Co-Founder Iqbal Ameer

The live entertainment industry is still dealing with staffing shortages and inflationary costs exacerbated by the pandemic, which are being passed on to fans in the form of higher ticket prices. However, according to All Access Anonymous (AAA) co-founder Iqbal Ameer, live events are facing deeper challenges when it comes to financing.

He recently co-founded web3 startup AAA to address these issues and create a decentralized network to support independent creators and fans in the APAC region.

Last month, AAA announced the first nine festivals in Southeast Asia to join its network, which include We the Fest, S2O, Ismaya Live's Djakarta Warehouse Project (DWP), Ravolution, It’s The Ship, Rockaway, Good Vibes Festival, Together Festival, and 808 Festival

XLIVE spoke with Ameer about the underlying issues with live event financing and how the new AAA decentralized network is aiming to address the problems for the live entertainment ecosystem.

XLIVE: What do you see as some of the biggest issues with event financing currently? Obviously supply shortages and inflation are big problems right now, but do the issues go deeper?

Iqbal Ameer: Promoters are required to hold a large amount of capital upfront to facilitate the planning, development, and execution of their event. Unfortunately, the nature of the business requires a consistent circulation of capital, making it almost impossible to build up enough of a reserve to self-fund every event. This results in most promoters being required to seek funding from financial institutions to facilitate their events.

There is one overarching issue that promoters face when seeking funds from financial institutions, and that is that live events are labeled ‘high risk.’ In light of the multiple moving parts working in tandem to successfully execute a live event, traditional financiers are extremely cautious. Consequently, despite the short term nature of live event loans, the ‘high risk’ label attracts exceptionally high interest rates. Whilst in a ‘normal’ situation a business would be in a position to justify a reduction in interest rates, traditional financial institutions do not place value on live experience products, the economic interest they bring, and their effect on establishing fandom and loyalty.

XL: How will AAA’s financing be set up to be able to fund loans for creators?

IA: AAA’s solution provides the liquidity that promoters require, without the need to deal with unreasonable financial institutions. This solution is made possible through our utilization of Web3 technology, in conjunction with our not-for-profit treasury, registered in Switzerland. 

After joining the AAA network, our verified promoters have the opportunity to request up to 100% of the capital they require to execute their event. Unlike the approach taken by traditional financial institutions, we have developed an equitable means to assess and validate a promoter and their product. 

Ultimately, our goal is to create a flywheel, whereby as time goes on, fans will be more and more involved in the financial side of every event. 

XL: What else do you think could be done in the wider industry to address these issues?

IA: We live in a world that is dominated by conglomerates. Institutions own the artists, the event brands, the ticketing companies, and many other key components within the industry. This monopolization forces out independent promoters, who are the true innovators - the ones driving change and exploration within the industry. 

There needs to be more attention and support given to independent promoters and also the network of individuals that work within the industry. The unfortunate reality is that during the pandemic many independent promoters, artists, production companies, agents, support staff and more, were completely forced out of the industry. 

We have lost a lot of vital people and web3 solutions provide the stability needed to encourage these people back. 

XL: Do you have any plans/hopes to eventually expand to other regions?

IA: I’m glad you asked… 

At this stage we’re focusing all of our efforts on South East Asia and Australia. Once we are happy with our foothold on those regions, we’ll begin Phase 2 of our expansion plan. But rest assured, AAA intends to service all promoters who see the value in what we are providing. 

XL: Is there anything else you'd like to mention?

IA: AAA is the first platform of its kind that supports all stakeholders in the industry. From the fans, production companies, agencies and more, we’re working towards creating a harmonious and equitable ecosystem — where everyone wins. 

Being a part of the live event industry for a number of years, I have learnt the importance every single role plays in executing a successful event. I often like to compare events to an orchestra. All performers that make up the orchestra are crucial to the success of the performance. If just one performer is unable to fulfill their role, the performance can completely fall apart. However, when all parts work together in tandem, it is a thing of beauty. 

The first phase of AAA has been nothing short of amazing. Whilst we knew that our fellow industry professionals would appreciate the change we are attempting to introduce, we could not have foreseen the amount of support we have already received. We hope that more people will see the value in what we are trying to do and join the discussion to change the industry that we love so much.