Sellaband.com Proves Concept, Scores $5 Million In Funding
SellABand, a German concern, has scored $5 million in funding for their innovative record label model. Artists sign up and upload some of their music. Users listen to it. If they like it, they pay $10. If a band reaches $50,000 in donations, SellABand will record an album in a proper studio with an established producer and market the release.
The concept, while provocative, was iffy at best with only 130 bands signing up in the first couple of weeks, and scoring a fistful of dollars in “donations.” However, a few months later almost 3000 bands from all over the globe have created profiles and 18 bands from 11 different countries have actually reached the $50K milestone. Last December SellaBand partnered with Amazon to offer a dedicated music store on the mega online retailer’s site.
Listeners who “bought stock” in an artist, called Believers receive a limited edition of the band’s CD when it’s released. They can get a refund on their investment at any time. $50K Artists get 1/3 of all advertising revenue from their profile on sellaband.com, and 60% of proceeds from album sales. The artist has to give up their rights to the masters for one year from the release date, but get them back after the one year period.
Now comes word that SellaBand has secured $5 million / €3.5 million in a Series A round from Prime Technology Ventures, a Dutch fund.
Could this be a viable model for the future?
More information on Sellaband.com