The platform is designed to offer accredited investors from across the country an opportunity to become Broadway investors; a portion of the offering of the capitalization of On the Town has been reserved for accredited investors willing to invest a minimum of $10,000.
In a statement Howard Kagan said, “With the theatre industry evolving rapidly, we aim to open up the once-closed circle and invite theatregoers who are accredited investors to invest in what they love, and to share the thrilling, one-of-a-kind experience of backing a Broadway show. By streamlining the investment process and increasing accessibility, we hope to expand the community of Broadway investors, beginning with an opportunity to join in the journey of a major musical revival, On the Town."
Unlike crowdfunding platforms Kickstarter and IndieGogo, the Maxolev online investment platform, according to press notes, offers "equity in its productions, and benefits that match those available to traditional Broadway investors. Prospective investors can research current opportunities at invest.maxolev.com and learn about the Broadway business model. Investors who choose to proceed are able to directly access a secure, custom platform built by Maxolev and Wealth Forge to continue the online investment process."
An accredited investor, as defined by the SEC, is:
- A person who has individual net worth, or joint net worth with their spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person;
- A person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
- A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
- A business in which all the equity owners are accredited investors.