The investors who join with the general partner are called limited partners. The limited partners are kept informed of the progress of the show and are invited to opening night, but they have no creative input and little other involvement. Others ways of funding productions are sometimes used. Non-profit groups who depend on grants and donations put on some productions, especially ones staged outside of New York City. But in Broadway, off-Broadway and other New York playhouses, most producers are out to make a profit.
Most producers have a stable of interested investors on their mailing list.
Minimums and Risk Producing Golden Child cost about a million dollars, Mordecai says. But most investors put up much more. Some opportunities exist to get in at a lower level, but most require a high investment. Vogel adds that knowing about the general partner with whom you are getting involved and knowing his or her work is important in deciding if you will let them use your money. It's a high risk gamble.