Why JOBS Act Crowdfunding won’t work on Broadway.

There’s something you never thought I’d say, right?

Well, I didn’t.

But Gary Emmanuel, who happens to be one of the brilliant lawyers that made my crowd-funded Broadway production of Godspell possible, did.

Gary wrote an article recently for HuffPo that offers a contrarian view of why crowdfunding under the recently passed but still non-operational JOBS Act won’t work.  You can read the article here.

Do I agree with Gary?

Well, it’s true . . . there are a certain number of characteristics of the JOBS Act that are going to make it more difficult than people think to raise money for commercial enterprises, including Broadway and Off-Broadway shows. And Gary addresses five of them in his article.

And the fundraising world is still waiting for the SEC to release its set of rules and regulations on JOBS so that people can actually start trying to do it.  Because when we start road-testing this sucker a whole bunch of other issues are going to jump up and bite us in our assets.

That said, I have some ideas . . . 🙂  So stay tuned.

Do read the article.  Knowing Gary as well as I do, I don’t think he wrote this because he thinks crowdfunding won’t work . . . I think he wrote this so we can start figuring out how to work around it.

 

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Comments
  • Cornell Christianson says:

    Mr. Emmanuel is incorrect on every point.

    1. There are limits on the amounts that can be raised. Wrong. The $1 million limit is only on unaccredited investors. There is no limit for accredited investors.

    2. How do you manage 100s or 1000s of investors?
    I plan to have 20 investors each put in $10,000 for my Off Broadway musical.

    3. Costs of compliance will be disproportionately high. The portals like Indiegogo are going to handle the compliance and disclosure documents to make it as easy as possible for the filmmakers and theatre producers.

    4 Crowdfunding will create significant legal exposure for companies and their management. There will be SEC rules followed by portal rules giving full protection for the companies.

    5. Who will want to invest in a company that has been crowdfunded? Investors love crowdfunded companies because it means they already have a following. In independent film today you have to be crowd funded because it proves to the distributor that you have a built in fan base.

  • christine says:

    I SAW KINKY BOOTS LAST NIGHT. WHAT AN INCREDIBLE NIGHT AT THE THEATER. MY ADVICE IS GET YOUR TICKETS NOW BEFORE WORD GETS OUT HOW FANTASTIC THIS SHOW IS AND THEY ARE SOLD OUT.CYNDI’S MUSIC WAS FANTASTIC THE CAST IS AMAZING. I LOVED IT. CAN’T WAIT TO SEE IT AGAIN. ANOTHER HIT KEN BRAVO!

  • KEN—PLEASE !!!!

    Do you mean to argue that “crowdfunding” is not entrenched at the Tony awards when the 12 or so “Producers” march up en masse on stage. This is still shocking to me w/memories of David Merrick, Alex Cohen, or Hal Prince were the producer, and the word actually meant something.

    Disney, HBO are now the “crowd funding” producers de-facto are they not ?

    Otherwise, I would still want to accept my Tony—but those days are long gone by the crowd of money, and not talent !!!!

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