Variety: Not to contradict that “Avenue Q” tune, but the Internet isn’t just for porn anymore. Now it’s for Broadway investing too.
Maxolev Prods., the Broadway production shingle led by Howard and Janet Kagan (“Pippin,” “Porgy and Bess”), has launched an online investment platform for Broadway shows — the first since the JOBS Act, the 2012 modification to SEC regulations that aims, in part, to bring the democratization of crowdfunding to the process of raising capital for small startup companies. A Broadway production, produced by an LLC of partners and investors, qualifies.
2 comments:
While I think this is an innovative idea that could have potential, I am not yet sold. Working at a Broadway producer's office this summer, I got a bit of insight as to the types of people who invested in Broadway shows. Based on what this article is describing, this crowdfunding technique is doing nothing but allowing more of the same types of people who are already investing in Broadway make contributions. While I'm sure many producers are happily willing to take whatever money they can get, I think this crowdfunding idea can become dangerous. There are thousands of people out there with lots of money who want to invest in Broadway shows. However, on the producing side, I believe it is equally important to carefully consider WHO you allow to invest in your productions. Very often, some people end up causing more trouble then they are worth. Because of this, I would be skeptical as to trust the people who are investing via the crowdfunding method. As a producer, I would not only want to raise the proper funds for my project, but I would also want to make sure that I am taking in investors who I can have a healthy, collaborative relationship with.
I had no idea that Godspell had raised that much money through crowd funding. It seems like a good idea for Broadway to open up to a wider base of investments. I dont know if they had some research agency study if there were probable sufficient donors to make the venture worth it, but i hope there are. I was not aware before that there were certain laws that only allowed individuals above a certain pay scale to invest in projects like this, it seems kind of strange.
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