Launched less than a year ago, online ticket marketplace LiveStub is closing its doors for the near future. Co-founders Levi Bergovoy and Michael Hershfield founded the company with the goal of meeting the needs of the evolving ticket marketplace. Their platform connected buyers and sellers directly and free of charge by offering technological tools tailored to the sellers and buyer’s needs, such as a Google Maps feature that located sellers in relation to buyers.
In a conversation with TicketNews, CEO Michael Hershfield cited three reasons for LiveStub’s closing: the financial collapse of LiveStub’s key investor, the current economic climate, and major shifts in the ticketing industry.
LiveStub’s angel investor, Morten Lund (most famously a Skype investor), was recently declared bankrupt after losing money in a newspaper investment. As a result, Lund’s investment funds have taken a back seat as he restructures his business and his investment strategy. Lund’s financial collapse occurred in tandem with the decline of the general economy, and that decline also directly affected LiveStub.
Hershfield pointed out that venture investing has been frozen almost to zero. “Tech companies have not been able to find new financing, whether it is us or start-ups in our ilk,” he said. And LiveStub’s micro investment banking backing has gone through its own paralysis, another result of the economic downturn.
But aside from the poor state of the economy, Hershfield said changes in the industry are affecting the way investors see the market. The potential of a Ticketmaster/Live Nation merger and the rise of digital ticketing have created a high level of uncertainty amongst those who might invest in companies like LiveStub. “The emerging monopoly will restrict new players and new investors who are wary of what the climate will look like post-merger,” Hershfield said.
He noted that a Live Nation/Ticketmaster monopoly would create barriers to entry into the market, such as technological barriers. In addition, the life cycle of the ticket could be potentially controlled from beginning to end. Ticket inventory could conceivably be controlled as well.
Despite uncertainty about what place the secondary ticket industry takes in this evolving market place, Hershfield is confident that consumers deserve choice. He believes there is a place for a company like LiveStub, assuming the environment is conducive. Because of this, LiveStub is still looking to raise capital in what Hershfield calls “these unique times that require unique perspective.”
“Time will tell how it will shake out,” he said. “The landscape is changing dramatically. You can’t hold back change, and there’s going to be tremendous changes. The question becomes: Where do the current players shake out in this very quickly evolving story?”
17 Comments
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I’m guessing since your on this site your a punk who sells tickets from his bedroom, doesn’t pay taxes on the earnings, hides behind “anonymous” because you have no balls, and aren’t even as old as my business, 22 years. So your opinion means nothing, punk!
It was a good concept, but realistically, the secondary market now is so easy to use, despite what companies like TicketsNow say, a company like LiveStub really doesn’t have a place. Customers can go on StubHub or eBay and the majority of the time, find what they’re looking for and with the secure backing of a reputable company. Eventually, the people who survive on the secondary market are going to be the ones who align themselves with the most reputable companies.
Here’s hoping the scumbags at Preferred Seat are the first to go!
Ok anonymous punk with no balls, “I’ve been doing this long enough” just what besides jerking have you been doing long enough that puts you next to God?
I don’t need to jerk it, that’s what your wife’s for.
You seem like a very angry and bitter little man…I’m guessing the fate of lost livelihood that you wished upon other brokers is probably scaring your own self shitless, which is a good thing. It’s nice to see karma come to pricks like you. Anyway, because I’m a nice guy, I thought I’d do you a solid and help you get the ball rolling, so here’s a link you might find useful in the coming months:
http://www.edd.ca.gov/Unemployment/
I don’t know either of you, but you sound more like the bitter little old man, just cause he made the punk comment. Name calling gets you NOWHERE little man, cause I’m guessing you are. So you must be small (sorry we can’t all be big) Anyway, you spout Karma and pricks in the same sentence, hard to believe you are nice with the venom you spewed out. The link to EDD was not necessary, but my guess you are like the writers on this site, who will write garbage like this just to get a reaction or for you “get your rocks off on things like this. Be more constructive in your insults and complain to your representatives instead of blogging on a site that will get you nothing. So what state do you live in so that guy can send you a link for your state, cause if Schumer gets his way, you will be out of business too little one.
First of all I support all brokers, I was just making an observation. I have 22 years of regular customers and O complaints with the BBB, plenty of good karma here. And just who are you?
Someone who will outlast you. Must suck to lose your business and all the equity in your house in the same year. Oh well, once again, karma.
Karma must be keeping you pretty high, get off the drugs and into reality. Quick commenting when you know nothing about what you say, and stay anonymous, you’ve got no balls.
LOL…I’m older than your business, pay taxes, and have been doing this long enough to know pieces or garbage like you are the reason the government wants to shut brokers down. But yes, you d******, rejoice in all the brokers who will be out of business because of your sleazy business methods. Fortunately, I won’t be one of them.
Sad, but space got too crowded too quickly.
First domino of many to come.
Mike is a stand up guy and I’m bummed things didn’t work out better for him.
And if the Ticketmaster/Live Nation merger goes through, there will be a long list of ticket brokers joining them.
I know quite a lot about what I say, which is why my business will be around in two years and you’ll be a ticket taker at Arco Arena.
It is correct that consumers can go to StubHub – that is what KiveStub was, a knockoff of StubHub. There is still room for competition but it is closing and without enough capital to wheather the start up any will fail.
As for merger of TicketMaster/LiveNation – that WILL be the downfall of a lot of brokers, particularly the ones that do this part time. They will have to go back to flipping burgers or telemarketing.
Like I said before, your opinion means nothing. You go ahead and hide behind anonymous and post crap on blogs, that’s your job and what you’ll be doing in two years. Your pathetic, get a life!
If it means nothing, why do you keep responding and sounding all hot and bothered? I post on here for fun, to irritate idiots like you. I have a real job that generates more income than both the unemployment checks and Arco Arena paychecks you’ll be cashing in a few months, loser.