There’s no telling what a $10 investment in U2 in 1985 would be worth today, but a start-up Web site called Sellaband is offering music fans the chance to put their money behind artists they think can climb the charts.

The Amsterdam-based company allows fans — or what Sellaband calls “believers” — to invest in unsigned acts in $10 increments. Once an act reaches $50,000, it is given access to a recording studio and professional production, song-writing and marketing expertise.

“It’s not going to be the only way, but in a business that’s desperate for a new business model, it gives musicians another opportunity,” Sieff said.

Investors will get a free copy of the CD, a cut of any CD sales and a share in the advertising revenue generated for the site, www.sellaband.com. Sellaband keeps 40 percent of any music publishing revenue, but none of the recording proceeds.

“If our plan is to take out the middleman, we should not act as a middleman,” said Johan Vosmeijer, Sellaband’s managing director, and a former Sony BMG executive .

All funds are held in escrow until the threshold is reached, and the interest generated from the accounts goes to Sellaband.

Recording veterans have signed up to work with Sellaband because they think it can fill a void left by the industry consolidation that is siphoning profits back to parent companies instead of using them to develop up-and-coming talent.

washington post