By doing so they join a select club of individuals who are an integral part of the producing process, and enjoy the insider benefits of glamorous press night parties, priority booking and of course if the production is successful, the financial rewards.
Being a theatre angel means you are directly involved with a major commercial theatre production and while risky, it is a special club that can prove a gateway to a glamorous world of show business!
The capitalisation is raised through independent investors, or ‘angels’, who individually invest a specific agreed amount of finance into the capital, and whose liability ends at that amount.
The first profits from the production always go straight back to these investors until they have recouped their initial investment, after which the production is deemed to be in profit. Once this capital has been repaid, the investors will share in 60% of the production’s profits, with the producers retaining the remaining profits of 40%.
Usually, the minimum amount required to invest in a commercial play is £2,500 and a musical approximately £10,000 but smaller amounts are possible if agreed with the producer. Investment in commercial theatre is extremely risky and investors can lose all of their investment, however, it can also be very profitable and it is infinitely more interesting, fun and glamorous than a lot of other investments.