#SLEEPLESS IN SEATTLE 2 LICENSE#
In addition to hiring American press agents and marketing folks to work with the Sleepless team in London, the “roceeds will also be used for administrative and office costs, legal and accounting fees, license and royalty fees, travel to and from London, and other production costs to be incurred prior to the show opening,” stated the producers. Over the next two weeks, Shor is looking to raise at least $25,000 through investments as small as $100 to cover the pre-production costs of the musical.
“I feel like we have a winner here, and it is an opportunity for people to get in on what normally is a much larger investment for a minimal amount,” he said.
However, with all of the money needed for a West End production sitting in the bank, Shor is not concerned about scaring away potential investors. “I'm not looking to replace traditional investors,” Kagan said. “We are raising the money primarily from our traditional sources and aren’t reliant on this new channel,” he stated at the time.
Some Broadway producers might think that resorting to equity-based crowdsourcing sends a signal to the world that the regular pool of investors on Broadway all passed on the project.įor example, when Howard Kagan raised money for On the Town through a form of equity-based crowdfunding before the new system was put in place, he made it clear that traditional Broadway investors were still providing the bulk of the $8.5 million initial investment. “They’re afraid that it seems like they can’t raise the money,” Davenport added. “Broadway producers increasingly are raising their money from the same circle of investors,” he said. “The JOBS Act, as far as Broadway producers are concerned, has basically been a big yawn,” observed Wasser. Yet, since the new crowdfunding system was created to eliminate the regulatory roadblocks, no Broadway producer has used it. “This was a great experiment, this was great to put in place, but never to be repeated,” Wasser told Davenport after raising $2.75 million of the $5 million production budget through crowdfunding. “Some states said, ‘no way, no how, it’s not going to happen,’ other states conditioned it on, ‘well, nobody who makes less than $100,000,’ and, at the end of the day, there were only about a dozen states where the offering was cleared,” he remembered. examiners scrutinizing every sentence,” and then the “offering had to be presented to each state that you wanted to sell in,” he said. was, ‘we may have let $50 billion go by us, but we sure as heck are not going to let $5 million go past us.’” “So, for this little simplified offering we had about half a dozen S.E.C. “We were right in the aftermath of the Madoff scandal,” recalled his attorney, Daniel Wasser, and “I do not know if it had anything to do with it, but the attitude of the S.E.C. In 2010, when Broadway producer Ken Davenport decided to raise money for Godspell through crowdfunding before the JOBS Act, he needed to use another regulation, pass a licensing test to sell securities, and jump through numerous hoops in order to get approval from the U.S. “Because of this bill, start-ups and small business will now have access to a big, new pool of potential investors, namely, the American people,” he commented, emphasizing that, “for the first time, ordinary Americans will be able to go online and invest in entrepreneurs that they believe in.”Įquity-based crowdfunding was designed to make it much easier for businesses to raise money. “Right now, you can only turn to a limited group of investors, including banks and wealthy individuals, to get funding,” stated President Barack Obama in 2012.
Introduced as a part of the JOBS Act, equity-based crowdfunding allows small companies to raise up to $1.07 million selling securities to the general public through online portals.
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