London - A new U.K.-based venture called Bandstocks allows consumers to invest in a promising artist's recording, and receive a cut of profits from the resulting album's sale and licensing, the Guardian reported. Once enough Bandstocks visitors purchase $19 stakes in a band, the funds are released for recording. The model is very similar to one launched by Netherlands-based Sellaband in 2006. Bandstocks is backed by music manufacturing and distribution firm The Vinyl Factory, and the founders of record label B-Unique, home to artists including Primal Scream and Kaiser Chiefs.

Related Links:
http://www.guardian.co.uk/business/2008/aug/27/musicindustry.investing

http://www.bandstocks.com