Toronto online ticket upstart LiveStub has been forced to go offline. In an interview 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.
That’s a trifecta of bad news for LiveStub. A deep pocketed Angel investor running dry thanks to a newspaper investment gone wrong, today’s crappy macroeconomic climate and a major shift in the entertainment industry with Ticketmaster merging with Live Nation and digital tickets becoming more commonplace.
Best of luck to Hershfield with his next venture!