Putting a new spin on crowdsourcing and the very risky business of producing Broadway shows, investors Howard and Janet Kagan have launched a new online investment platform invest.maxolev.com, offering equity in Broadway productions. Their first venture is the $8.5M revival of the 1944 Leonard Bernstein-Betty Comden-Adoph Green musical On The Town. The show is slated to begin previews on September 20 at the Lyric Theatre, the latest name of what was, most recently, the Foxwoods Theatre.
That's a very short window to raise money for a show this close to opening. The platform is designed to offer accredited investors an opportunity to become Broadway investors. Maxolev Productions has reserved a portion of the offering of the show's capitalization for accredited investors using this platform.
"We are raising the money primarily from our traditional sources and aren't reliant on this new channel," Howard Kagan told Deadline. "We're hoping the new channel is successful in expanding the universe of Broadway investors. If we get $1M to $2M from this new platform, that's a big success."
The show is directed by John Rando (Urinetown) and choreographed by Joshua Bergasse (TV's Smash). Opening date is October 16.
"By streamlining the investment process and increasing accessibility, we hope to expand the community of Broadway investors," Howard Kagan said, "beginning with an opportunity to join in the journey of a major musical revival.”
Unlike crowdfunding platforms Kickstarter and IndieGogo, the Maxolev online investment platform offers equity in its productions, and benefits that match those available to traditional Broadway investors. Maxolev has bee involved in the Broadway productions of Pippin (2013) and Porgy And Bess (2012) The Kagans also co-produced Hands On A Hardbody, The Anarchist, and Bonnie & Clyde.