LAST CALL for our Broadway Investing Seminars.

Note to self . . . when you don’t do things for a long time that were very popular, and then do them later on, they tend to be popular again.

This happens to be the theory of why certain Broadway shows are revived.

And this also seems to be why we’ve had so many folks register for our two upcoming seminars about the ins and outs of Broadway Investing.

As I wrote here, I used to do these seminars twice a year for people who were interested in learning more about Broadway Investing, and for those folks who were looking to raise money and wanted to know how Broadway investing worked so they could explain it to their investors.

They were always popular.

I stopped doing them for a while, focused on publishing this book on Broadway Investing (the only book on Broadway Investing, I’m proud to say) . . . but the seminars are back, baby!

And based on the signups we had when I first announced it, both upcoming sessions are going to sell out, so I wanted to give you a LAST CALL before the seats are gone.

Here are the dates:

Tuesday, March 10th at 7 PM (extremely limited availability)

Monday, April 6th at 7 PM (limited availability)

Click here to sign up now and join other theater fans like you interested in learning more about . . .

  • How profits are split for Broadway Investors (including how Producers are paid)
  • Finding projects to invest in (including my strategy for picking a winner)
  • What besides profits you can hope to get from investing in a Broadway show (yes, we’re talking perks!)
  • Tax implications of Broadway Investing
  • And more . . .

Oh, and everyone who comes will get a free copy of the book, Broadway Investing 101.

I expect March 10th to sell out in the next 48 hours (and I’m keeping these seminars intimate to make sure I can answer everyone’s questions), so sign up now.

Last call everyone!

www.BroadwayInvestingSeminar.com

Putting The Fund in Funding on Broadway

I never believed in them.  For Broadway anyway.

Sure, investment funds were fine when you were buying a basket of boring stocks to prepare for your retirement, but for Broadway?  For any kind of art where so much emotion is involved?  One of the key criteria I recommend in this book before anyone invests in a Broadway show is to make sure you love the show.  I never thought investors would take to getting in a bunch of shows at once, especially if that fund was blind.

In fact, after I crowdfunded Godspell, a whole bunch of my micro-investors (customers, in this case) suggested that I start a fund.  “Nah,” I said.  “People want to know what posters they are going to hang on their wall.  They won’t want to do this.”

Idiot me was telling my own investor/customers what they would do and wouldn’t do.  (That’s like Ben & Jerry’s saying, “No, you won’t like that flavor,” after some of their most passionate cone buyers tell them they would.)

Flash forward five years later, and one of my most trusted mentors/Broadway investors suggested it again, AND said she’d start it off with a check.

This time, I listened.

I called the same terrific lawyer who helped me through Godspell, and I popped open a trial “starter” fund to give it a whirl.  (Sometimes you may have to beat me over the head with an idea to get it to take root, but, once it does, I get that seed to sprout pretty damn fast.)

In this case, the fund was for “Front Money” only – the earliest investment dollars a Broadway Producer needs, which historically has been the hardest money to raise on Broadway.

And, yet, this Front Money Fund was the easiest money I had ever raised.  And it’s also the reason I have four new musicals debuting in the next 18 months (more about that later).  Because when you give an Artrepreneur capital, they’ll make stuff with it!

When I asked why they liked the fund concept, my investors, of course, talked about the diversification.  If 1 out of 5 shows was the average rate of recoupment on Broadway then this was an easier way to play the numbers and reduce the risk.  They also talked about some of the other perks, like watching the shows develop and having additional rights to invest.  But, they also said it just made it easy to get involved with many shows at once, since they would have probably invested in them at some point anyway (these were my most trusted and loyal folks, after all, who always get first access to my stuff.)

At the same time I had my success, I noticed, other funds of all kinds starting to pop up on the market from blind funds, to rolling funds and, even, a fund just for projects led by women.

As Broadway has gotten hotter, and more and more people look to get involved, I’m predicting more and more funds will pop up.  And why not?  After all, they should mitigate risk AND make things easier.  (Most of the funds that have popped up are too early in their life cycle to have heard any real results – so I’ll have to update this blog in a few years.)

While I do believe “blind funds” will always have a greater challenge in raising monies than those funds where you know the shows you are investing in (most traditional mutual funds aren’t blind, after all), the truth is the success of any fund will depend on the same thing that those traditional funds depend on . . . who is running it.

What do you think about Broadway Investment funds?  Fad or a fantastic alternative?

– – – – –

Looking to learn more about Broadway Investing, including how funds work, and whether they’re for you?  Click here to register for my only Broadway Investing Seminar, coming up on March 10th and April 6th!

Can’t make those dates and still want to learn more . . . maybe because you’re looking to invest in your first Broadway show, or maybe because you want to learn the investing process because you need to raise money for your show?  Read Broadway Investing 101, the best seller now available on Amazon.com!

 

Something I haven’t done in awhile.

For those of you new to the blog, one of the first things I did on Broadway that got some national (and even international) attention was my crowd-funded Godspell

One of the reasons I chose that massive legal and logistical undertaking was because, well, Stephen Schwartz told me that Godspell was about a community of people coming together . . . so I wanted to bring together the largest community of Broadway Investors ever (I’m a big fan of marrying your marketing message with your artistic message).

And the other reason I did it was because I had this theory.  See, I believed there were thousands and thousands of people out there who were interested in investing in Broadway shows, but . . .

1) They didn’t know who to talk to about it.

and . . .

2) They didn’t know how it worked!

The response to the Godspell offering was overwhelming, to say the least, and it proved my theory correct.  Investing in Broadway shows has, in the past, been for a very select group of folks, and often we kept more people out than we invited in.  And even when new folks got into the ‘club’ they often didn’t know what was happening after they wrote the check!

Since then, Broadway has gone through one of the biggest booms in its history and interest in Broadway Investing has skyrocketed.  Because when any industry posts numbers in the billions as we have, people come from all over hoping to find “the next Hamilton.”

And whenever you rush into anything, you can often make mistakes.

That’s what led me to develop a workshop on Broadway Investing several years ago, and eventually publish this book, Broadway Investing 101, a best seller on Amazon.com and the only book on Broadway Investing on the market.

But books are no substitute for the live, in-person, experience, right?  (We all love the theater, don’t we?)

That’s why, we’re reviving the Broadway Investing Workshop!  And we’ve got TWO dates coming up . . .

Tuesday, March 10th at 7 PM

Monday, April 6th at 7 PM

In this Broadway Investing workshop, you’ll learn

  • The myths of Broadway investing, and how exactly the money flows
  • Who to talk to and where to find Broadway investment opportunities
  • How to decide if an investment opportunity is right for you
  • Simple strategies to mitigate your risk and increase your chances of profitability
  • How to maximize the perks of Broadway investing

If you are interested in learning more about Broadway Investing, whether you’re thinking about investing yourself or if you’re just curious about how shows like Hamilton are funded, click here to join us for either date.

The seminar is $99 and we’re keeping the group small to make sure I can answer all your questions.

Oh, and everyone who comes will get a free copy of my book.

So grab your seat now.

 

(Interested in learning about Broadway investing, but can’t attend the live seminar on March 10th or April 6th? Click here to get your copy of my book “Broadway Investing 101: How to Make Theater and Yes, Even Make Money” on Amazon.)

What is the recoupment rate of REVIVALS in the last ten years? Part III

When I first started producing shows and had to talk to potential investors, I put musicals into two different metaphorical buckets to make the risk levels easier to understand.

I described the two categories of musicals (original and revival) like this:

New musicals were like stocks.  More risk, but a potential for a greater return.

Revivals of musicals were like bonds.  Less risk, but the upside was limited (lack of subsidiary rights participation, shorter runs, etc.)

Since then, I’ve produced new musicals and three revivals (Godspell, Spring Awakening and Once on This Island).

My experience with these shows as well as watching what has happened with the other revivals over the past few seasons has given me that reach-for-the-Tums uneasy feeling.

So, for this third blog in our three-part Recoupment Study (See Part I and Part II here), I decided to dig into the recoupment rate of Broadway musical revivals over the last ten years.

Here’s what I found out.

In the past ten seasons on Broadway, the recoupment rate for Broadway musicals is . . . drumroll please . . . 18.52%.

Did you pop a Tums yet?  Cuz I just downed four.

See, we know that the average recoupment rate on Broadway is 20% . . . and sure, sure, this revival recoupment rate isn’t that much under 20%, but it is under!  And we’re talking about revivals!  The “bonds” of Broadway!  A revival has brand awareness!  It also has a limited upside!  So it should be less risky.  But, in the past several years it has been more difficult to get your money back on a revival than a new musical.

Argh.

I wasn’t satisfied with just this info, so I decided to dig into this subject a little shallower . . . meaning I examined the data over the last 5 years to see if I could see a trend from the 10-year span to the five-year span.  What did I discover?

In the past five seasons on Broadway, the recoupment rate for Broadway musical revivals is . . . drumroll please . . . 16.67%.

That’s right.  It’s getting HARDER for revivals of musicals to get their money back on Broadway . . . despite their limited upside.

What does this mean?

It doesn’t mean that we should stop producing or investing in revivals.  But if we are going to produce a revival or invest in one, it does mean that we need to structure our deals with the Authors, Stars, Vendors, etc. differently, because the safety of a pre-existing theatrical brand isn’t enough anymore.  Based on this data, Producers and investors are going to need more of a reason to jump into a revival, or they will only focus on new shows . . . and leave the revivals to the Non-Profits.

Or maybe, as Little Shop and Fiddler have proven, the way to produce a revival today is to do it Off Broadway and not on.

But we need to do something, because while I am so proud of the three revivals I produced, one of which got me a Tony Award, the numbers have spoken and they are saying to this Broadway Producer, “Don’t produce another one.”

It’s hard not to listen to numbers.

– – – – –

Want to learn more about investing in Broadway, including how it works and tips on how to pick a “winner”?  Read the only book ever written on the subject.  Click here.

 

Free Webinar Alert: The Ins-and-Outs of Co-Producing on Broadway.

There are two kinds of Producers on Broadway:  Lead Producers and Co-Producers.

Do you know the difference?  (This is a quiz.)

A simple analogy might be that the Lead Producer is like the Chairman/woman of the Board of a Non Profit . . . and a Co-Producer is like the Board Members.

But it ain’t so simple.

Co-Producing on Broadway has become an important niche in our industry.  It’s where most Broadway Investors graduate to, and it’s where most Lead Producers come from.

The Lead Producing Path often looks something like this:

Broadway Investor -> Broadway Co-Producer -> Broadway Lead Producer

Since Broadway shows have become more expensive over the years, Lead Producers have “sub-contracted” out the financing to more “Board Members” than in previous decades.  That’s why I get so many questions from readers and podcast listeners like, “How do Broadway Co-Producer deals work,” or “Who are the other names above a show’s title,” and “How do I become a Broadway Co-Producer?”

And, as I said on a recent “Office Hours” call for my PROs, if I get the same three questions on the same subject from three different people, then I know I haven’t done my job in getting people the info they want.

That’s why, next Wednesday, February 7th at 7 PM EST, I’m teaching a FREE webinar entitled . . . “Co-Producing on Broadway:  So You Wanna Be a Broadway Bundler.”

During the webinar, I’ll break down . . .

  • Strategies for choosing the right show to Co-Pro.
  • How to negotiate the best deal (and what those deals are anyway).
  • How to be a Co-Pro without having to invest your own $.
  • The risks and the rewards (and we’re not talking just cash).
  • A Co-Producer’s role in the production before and after it opens.

And, of course, I’ll take all your questions at the end of the session.

To join me and learn more about Co-Producing on Broadway, just click here to sign up for this one hour webinar, next Wednesday night at 7 PM.  It’s free.

See you there.

WEBINAR:  Co-Producing on Broadway:  So You Wanna Be a Broadway Bundler.
DATE:  Wednesday, 2/7/18
TIME: 7 PM – 8 PM
COST:  FREE

To register, click here.

Ken Davenport
Ken Davenport

Tony Award-Winning Broadway Producer

I'm on a mission to help 5000 shows get produced by 2025.

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