Although many Broadway investors have been in the circle for a long time, it’s not as closed off as you might think.
It is not impossible for a new investor to participate in the hottest shows coming to town, but it can be challenging.
Additionally, producers may permit you to participate in something a little bit more risky in exchange for your consent to participate in a “sure-thing,” which, incidentally, does not exist. However, because it is a relationship-based business, investors who have been involved for a longer period of time and have remained loyal to the Producer frequently receive preferential treatment. What then does a brand-new investor do? Get the relationship going. Contact a Producer. E-mail them. Fax them. Simply state that you are interested in investing in a specific performance (if you are aware of one that they are about to perform) or request to be included on the list to be contacted regarding their subsequent performance. I do not know any Producers who would mind putting you on a “potential” list, and it is not a commitment for either party. Simply ensure that your interest is genuine.
How do you select a project to invest in now that we have reviewed the three most significant obstacles that, as potential investors frequently inform me, prevent them from taking the first step toward joining the ranks of Broadway and Off-Broadway investors? You should go through my checklist on how to decide whether or not to invest in a specific show once you’ve decided to invest in a Broadway or Off-Broadway show.
Rule 1 for Broadway Investing: Passionate about the Project
Producers and Investors are frequently referred to as Broadway shows’ “children.” Shows require the same level of tenderness, affection, and support; so much love that, as a parent, you’ll still love your child even when he f*cks up, right? Unfortunately, your “kid” will probably disappoint you, so you should make sure your bond is so strong that you won’t care which way it goes. The famous investment guru Peter Lynch’s theory of “invest in what you know” serves as a partial foundation for this theory. Peter was of the opinion that you ought to invest in businesses that produce goods that you encounter on a daily basis and that you simply cannot live without. This should and can be applied to entertainment investments, in my opinion. Put your money into shows that you can’t see happening. Put your money into shows you think are important to see; The audience will have a better day just by seeing the show, whether it is because it has a sociopolitical message, because it features an amazing performance by a legendary actress, or because it is so much fun. Put money into shows you enjoy.
Rule 2 of Broadway Investing: It all comes down to who controls the boat.
Wall Street nerds will tell you to look at a variety of things before investing in a mutual fund, one of the most important of which is who is managing the fund. You must be aware of who is in charge of day-to-day decisions. What is their history? Where did they acquire their skills? How much time have they been doing it for? Before making an investment in a Broadway production, you should ask all of these questions. Examine the Producer’s resume, which can be found on ibdb.com’s Internet Broadway Database. Do they have any shows that have done well? How many times have you hit them? How many were missed? Would you have made shows like that? Are your preferences comparable? One of the best ways to lower your risk when investing in a Broadway or Off-Broadway show is to choose Producers with a proven track record.
Rule 3 of Broadway Investing: You must be aware of your goal, just like an actor does.
What do you hope to achieve by investing in a Broadway production? The projects you choose to work on will be greatly influenced by your objectives. Do you wish to generate income? Do you want to attend opening night parties, for example? to make connections? Do you want inside access to documents like contracts and figures, so you can get more information about making your own show? Do you wish to support a particular playwright?
The investor’s idea to go to graduate school to learn how to produce is one of my favorite “objective” stories. Instead, they invested the money they were going to use for tuition in a number of shows instead. They believed that playing the game would teach them more. At the time I heard about them, they were doing well and beating the odds. A Broadway production is worth your money for a plethora of reasons. At the very least, you should have one.
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