Confidential Investment Memorandum
HARMONIZE
The Operating System for Independent Live Music
December 2025
The Thesis
1 venue proves the model.
20 venues prove the network effects.
Then we disrupt a $5.5B fee pool, build a $1.6B company,
and capture $240M in annual platform fees.
60-80x return on early investment.
The Problem
64%
of independent venues are unprofitable
+40%
Operating costs
since 2019
-23%
Concession revenue
since 2019
18%
Ticketing fees
% of gross (up from 12%)
+35%
Artist guarantees
since 2019
5,600 independent venues. Thousands of operators navigating this crisis with inadequate tools—cutting staff, taking predatory financing, selling to Live Nation, or closing doors.
The Opportunity
Every venue leaks $1.2M/year to intermediaries
Ticketing (Ticketmaster, etc.)
$386K
GPO/Procurement markup
$372K
Marketing/advertising
$119K
Network Opportunity: 5,600 venues × $1.2M = $6.7B in annual fees to disintermediate
The Solution
Three-layer architecture
AI AGENTS
12 specialized assistants replace $300K+ in annual labor
Talent Buying • Artist Manager • Marketing • Finance • GM Assistant
PLATFORM
5 marketplaces, unified data layer, 10+ integrations
Touring • Sponsorship • GPO • Content • Financial Services
BLOCKCHAIN
Invisible infrastructure—instant settlement, universal loyalty
$VIBES token • Smart contracts • NFT tickets • Rights management
AI Agent Suite
Replace $340K/year in labor with $17K/year in software
Talent Buying
Traditional$150K
AI Agent$6K
96% savings
Artist Manager
Traditional$60K
AI Agent$2.4K
96% savings
Marketing
Traditional$80K
AI Agent$4.8K
94% savings
Finance
Traditional$50K
AI Agent$2.4K
95% savings
Bar/Inventory
Traditional$60K
AI Agent$3.6K
94% savings
GM Assistant
Traditional$120K
AI Agent$9.6K
92% savings
The Founder
Stephen Sternschein
13 years operating venues. Billions delivered to the industry.
Empire Control Room
2012-Present
Premier Austin venue
Parish
Co-founder
Iconic Austin venue
Prism.FM
2018-2020
1,000+ venues • Exited
NIVA
2020-Present
3,000 members • $16B relief
Save Our Stages
2020
Clio & Webby Winner
Red River District
Co-founder
Austin music district
Why Now
The industry is breaking apart. We're building the replacement.
Live Nation Under Attack
DOJ + 40 states antitrust lawsuit
Trial scheduled March 2026
"It is time to break it up" — AG Garland
Ticketing in Chaos
Eventbrite sold for $500M (was $1.8B)
DICE acquired by Fever
Consolidation = opportunity
Touring Economics Broken
82% of artists can't afford to tour
J.Lo, Black Keys cancelled tours
Costs up, venues paying less
AI + Blockchain Ready
Claude enables 95% cost reduction
Solana fast & cheap enough
2-3 year window
The incumbents are wounded. The infrastructure is ready. The window is now.
The Playbook
Own → Operate → Prove → Scale
1
Phase 0-1: Secure & Build
Secure the asset. Build the platform. Empire becomes proof of concept.
Deploy AI agents. Prove unit economics on 1 venue.
1-2
Phase 2: Venue Test Bed
Acquire 1-2 additional venues. Deploy platform. Begin proving network effects.
GPO leverage starts. Data layer becomes valuable.
20+
Phase 3-4: Network Scale → Dominance
Scale to 20+ venues. Disintermediate incumbents. Launch $VIBES.
Full network effects. Roll up the industry.
The Disruption
$5.5B in fees. We capture $240M.
Incumbent Fee Pools
Ticketing$2.1B
GPO/Procurement$1.5B
Booking Agents$675M
Financing$500M
Sponsorship$420M
Content/Sync$350M
Total Addressable$5.5B
Harmonize Capture
Marketplace Fees$110M
AI Agent Subscriptions$125M
Token Economy$5M
Platform Revenue$240M
Investor Returns
Early money gets the best returns
$20M cap
25-30%
$400-480M
67-80x
Year 5 valuation based on $1.6B (8x $200M revenue)
The Ask
$6M
Own the laboratory outright. Build the platform. Then raise $15M for the 20-venue test bed.
One check. Six months. Then we disrupt the industry.
67-80x return potential
1 venue proves the model.
20 venues prove the network effects.
Then we disrupt a $5.5B fee pool, build a $1.6B+ company, and capture $240M in annual fees.
That's the playbook. Fund it.
Stephen Sternschein
stephen@harmonize.live
60-80x return on early investment.
Supporting Materials
APPENDIX
Appendix A: Market Size
Total Addressable Market
5,600
Independent Venues
US market
$7B
Annual Venue Revenue
Tickets, F&B, rentals
$5.5B
Intermediary Fee Pool
Addressable disruption
Appendix B: Unit Economics
Per-Venue Value Creation
CURRENT STATE (per venue)
Revenue$1.2M
Intermediary fees-$1.2M
Operating costs-$950K
Net margin-$150K
WITH HARMONIZE (per venue)
Revenue$1.2M
Harmonize platform fee-$200K
Operating costs (AI-reduced)-$650K
Net margin+$350K
$500K swing per venue from unprofitable to sustainable
Appendix C: Competitive Landscape
Why Now: Incumbents Are Vulnerable
Live Nation / Ticketmaster
DOJ antitrust lawsuit
Potential breakup creates market disruption
Eventbrite
Acquired by Bending Spoons ($500M)
Down from $1.8B IPO—distracted, cost-cutting
Prism.FM
Booking tool only (exited to AXS)
Single-point solution, no platform play
Appendix D: Team & Development Model
Claude-Assisted Development
TRADITIONAL APPROACH
8-12 engineers × $180K = $1.5-2M/year
12-18 month build cycle
High burn before validation
HARMONIZE MODEL
2-3 humans + AI = $300-400K/year
Rapid iteration (weeks, not months)
Working prototype already built
Let's Talk
Stephen Sternschein
Email: stephen@harmonize.live
Phone: Available upon request
Location: Austin, TX
Data room and interactive demo available upon request
HARMONIZE • Confidential Investment Materials • December 2025
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