New Online Investment Platform Will Let Theatre Fans Invest in Broadway Shows- Page 2

[Liza's Headband]

Posted: 8/5/15 at 8:14am

Any sensible "accredited investor" need not use a 'crowdfunding' platform or website to get a piece of the pie. If they're accredited and express an interest, someone will approach them about producing/investing... it just might not be the show they want. This model is inconsequential and will fail miserably after a year or two. 

[ScottK]

Posted: 8/5/15 at 9:05am

A theatre investment isnt necessarily "sensible"

And, if you are willing to lose $25000 (for whatever reason)--you'd get 10 opptys to make money instead of one or two--again, not really sensible

i do know of instances of people just wanting to be in the game-and at $2500 it lets them do it---even if they've already invested directly in a show previously (or plan to again in the future).

[brdway411]

Posted: 8/5/15 at 9:33am

Hubby and I are looking to get in on a show, but if we are putting our money into something, we want a say and this does not look like what we are looking for. 

[Liza's Headband]

Posted: 8/5/15 at 9:38am

You will not get a "say" as an investor only. As an associate or lead producer, you will have a "say." That's going to require some serious cash. Hundreds of thousands or, more likely, millions. Good luck... 

[ScottK]

Posted: 8/5/15 at 10:45am

to have a "say" will cost $100-$150k min (that might even just be a raised hand at a meeting)

unless you want to have alot to say, consider an off bway show--which might be a good first step

[HogansHero]

Posted: 8/5/15 at 11:44am

 regarding a "say" ...

Legally and by the terms of the offering, no investor has a say. The extent to which a lead producer will entertain input from an investor will depend on (a) some special expertise, (b) the amount invested (maybe) and (c) the personality of the lead producer. In a $15 million show, though, if $10 million is raised in $100k increments, that would mean a producer would have 100 people to listen to. Even the nicest producer on earth cannot deal with that. And someone who forces their input on a producer by calling, writing, confronting, etc. is very likely to be investing in that producer's show for the last time. It is really no different than buying $1 million in stock in Apple and thinking Tim Cook is going to take your call.

[PatrickDennis92]

Posted: 8/5/15 at 2:10pm

I haven't really looked at this in depth but I don't think it should be totally dismissed. There are a lot of people who get hit up for shows that aren't passionate about theatre, but maybe their kids or close friends are, etc-- this allows them to "only" lose 2500 and still participate. And maybe, indeed, they'll recoup.

But back to a comment made regarding aren't we all, as ticket buyers, investing in shows already? I have always thought that a clever person could crowd fund a show via the advance sale of tickets. No "investors" per se, but essentially setting fundraising goals via ticket sales, and if you hit the goal, you do the show. Just an idea. 

[AEA AGMA SM]

Posted: 8/5/15 at 2:28pm

The problem with only producing the show if you meet a certain amount of pre-sale is that the largest expenses are in getting the show mounted, so you need the money upfront. While many shows will begin rehearsals waiting to get the final amounts of funding in place, they are still starting with a fairly large majority of their capital set, since the largest expenses are things like rehearsal costs (salaries for staff, studio space, etc), and of course building and loading in the physical production. With ticket sales you don't receive that money until you actually do the performance that that ticket was sold for (I assume the money is held in some sort of escrow account so that it can't be spent and is ready to be refunded if the production closes early).

And of course no theatre owner is going to set aside a theatre for a tenant who will only open if ticket sales reach a certain level, especially with the number of productions that are always circling and waiting for an available house. And without a signed deal on a theatre you can't sell tickets. So you see where the problems would lie with anyone ever being able to implement a plan like that.

[PatrickDennis92]

Posted: 8/5/15 at 3:25pm

Oh I know all that. The model would need to be altered from the traditional telecharge or ticketmaster advance sale process. It would require the ticket purchaser to agree that their purchase was non refundable and that it only entitled them to a free ticket at a date of their choosing subject to availability. The $ generated would be available to producers after a certain threshold (capital requirment) and then those ticket buyers would have a set period of time to make their reservstions in whatever category of seat they bought. It would indeed require thought in order to make it work, and the example I give is simple, but I've always thought it could work. Somehow.

[Gothampc]

Posted: 8/5/15 at 3:32pm

I might consider it if I could be invited to an investor's preview or showcase of a new show.

[HogansHero]

Posted: 8/5/15 at 3:43pm

I think it is an idea that might work at the other end of the spectrum, esp. showcases, but there are just a never ending series of problems trying to do it on Broadway. Here are a few, in addition to the very good list from AEA above.

1. In order to fund a $10mil show, you would need to sell (@$150) 66,667 tickets. That's close to impossible for an property no one has seen. (And presumably you are not suggesting this for Hamilton-type shows.) 

2. Even to attempt to sell that many tickets, you would need heavy marketing and advertising. That means you need several million just to get to the starting line.

3. I don't think it is legal. I haven't double checked but I believe that the reason telecharge etc holds the money until the week after the performance week is because it is illegal to spend unearned ticket revenue. 

There's more but I don't think this could ever be viable on a big scale. 

[PatrickDennis92]

Posted: 8/5/15 at 4:52pm

I don't doubt it would be challenging. And you're right, it may not be legal without some creative thinking. And I'm not talking about only $10m shows. I am talking about all sorts of kinds of shows, off Broadway and small scale Broadway or even regional etc. It would be like kickstarter. You set the parameters and the goal, and you either hit it or you don't. Your not exactly buying a ticket, but making a contribution that entitled you to addmisson of a certain tier. Anyway, I agree, it's not easy; if it were easy someone smarter than me would have done it. But I dont think I'm nuts. I think there's a way to make something like that work. I have been wrong before.

[HogansHero]

Posted: 8/5/15 at 4:59pm

well as I said, I do think it is a good idea on a smaller scale. I just think the broadway hill is too steep to climb.

[Vastris569]

Posted: 11/17/23 at 8:37am

Phillypinto said: "If it becomes mainstream and easy via an online platform you could have shows that are crowdfunded, it could open the door to getting more things produced than just safe commercial stuff. Thoughts?
http://playbill.com/news/article/got-2500-new-online-investment-platform-will-let-theatre-fans-invest-in-broadway-shows-355795
"

This sounds like a fascinating initiative, bridging the worlds of finance and entertainment. Investing in Broadway shows offers a unique opportunity for theatre enthusiasts to support the arts while potentially reaping financial rewards. If you're intrigued by the concept and interested in exploring how online investment platforms come to life, this guide on creating such platforms might provide some valuable insights: https://www.cleveroad.com/blog/how-to-create-an-investment-platform/.

[BrodyFosse123]

Posted: 11/17/23 at 10:41am

Investing in Broadway shows offers a unique opportunity for theatre enthusiasts to support the arts while potentially reaping financial rewards.

[darquegk]

Posted: 11/17/23 at 12:02pm

Nobody has ever gotten rich off the theatre. Lin-Manuel Miranda, however, has done alright enough that he only drives an Uber four nights a week, and a multi-decade legend like Marc Shaiman only occasionally bartends nowadays.

Any New Yorker from the eighties will probably have stories for you about hearing a familiar voice say “cash or credit,” only to see Stephen Sondheim behind the counter at Thrift Drug, his yellow composition pad tucked into the pocket in his apron.

[BrodyFosse123]

Posted: 11/17/23 at 12:19pm

All those you mentioned didn’t invest in their shows, and a few of their shows failed to return their investments. Also, Miranda and Shaiman do an extensive amount of side projects AWAY from Broadway - TO SUPPORT THEMSELVES. They don’t create or focus primarily on Broadway work. You have better luck winning the lottery than investing blindly in a show that unexpectedly becomes the next WICKED. Every show that has been produced for Broadway expected to become the hit at WICKED level. As did those who invested their money in them. 

[jimmycurry01]

Posted: 11/17/23 at 1:09pm

I'm shocked anyone is responding to this. This thread is several years old, it was posted by someone who has (thankfully) long since vanished from the boards, and was only brought back to life today by an account that just joined this morning that is likely AI looking for investment related keywords in posts to drive up traffic to the website they listed.

[inception]

Posted: 11/17/23 at 4:03pm

When I Google for corroboration that LMM drives Uber or that Sondheim worked as a cashier on the 80's I find nothing.  These claims are so ridiculous.

Updated On: 11/17/23 at 04:03 PM

[msmp]

Posted: 11/17/23 at 10:55pm

That comment seemed pretty transparently sarcastic to me, lol.