Frequently Asked Questions
Is investing in a Broadway show worth it?
Investing in Broadway shows can be incredibly rewarding. You’re not just backing a production, you’re supporting the magic of live theater. However, it’s a high-risk, high-reward industry. Let’s dive into the details on this page!
How can I find a Broadway investing group?
Broadway investing groups can often be found through networking in theater communities, attending Broadway events, or through online platforms dedicated to theater investment. You can email me at kd@kendavenport.com and I can point you in the right direction.
How can you become a Broadway investor?
Broadway investment isn’t for everyone. Generally, you need to be an accredited investor, meaning you meet certain income or net worth thresholds set by the SEC. This ensures you understand the financial risks involved. Building relationships within the Broadway community is also key. Consider attending industry events or joining angel investor groups.
How do you finance a Broadway show?
Broadway shows are expensive! Financing typically comes from a combination of sources. Lead producers might contribute, but they also raise capital from co-producers and investors like yourself.
Can anyone invest in a Broadway show?
As mentioned before, investing in Broadway is typically limited to accredited investors due to the high-risk nature. This regulation protects both you and the production company.
How much does it cost to put on a Broadway show?
Costs can vary wildly, but putting on a Broadway show can easily cost millions of dollars. From theater rentals and set design to cast salaries and marketing, there are many expenses to cover.
Who finances Broadway shows?
A show’s financial backing comes from a team effort. Lead producers, co-producers, and investors all contribute to reaching the total capitalization needed.
How profitable are Broadway shows?
Not all shows are hits! Some productions lose money, while others become massive successes. Profitability depends on factors like ticket sales, running costs, and any touring opportunities.
How much do Broadway producers invest?
The amount producers invest varies. Some might be major players contributing a large portion, while others might connect investors or focus on specific areas like marketing.
How much does it cost to invest in a Broadway show?
The average investment is only around $25k according to our survey. Learn More
What is the failure rate for theatrical investments?
The world of Broadway is as glamorous as it is risky. Unfortunately, the failure rate for recouping an investment is high, around 80%. That means only about 20% of shows actually turn a profit.
How do Broadway investors make money?
If your show is one of the lucky few that finds success, investors can make a significant return. Profits are split between the producers and investors, with a 50/50 split being common after the initial investment is recouped.
What is the most profitable Broadway show?
The most profitable Broadway show of all time is the timeless classic Disney musical, The Lion King. This juggernaut has raked in over $6 billion worldwide – that’s a lot of Hakuna Matata for its investors!
What is the equity minimum on Broadway?
According to the Broadway League, to join the game, you’ll need to be an accredited investor and meet the equity minimum. This varies depending on the production, but the current minimum set by the Broadway League is $4,275. Keep in mind, this is just the minimum, and some shows may require a much higher investment.