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Sellaband closes $5 million round

By Nick Britton on April 09 2008

An online business that allows music fans to buy shares in new bands to help them release their first album has raised $5 million (£2.5 million) of venture capital (VC) funding. Sellaband secured the funding in a Series A round led by Amsterdam-based Prime Technology Ventures.

A new investor in Sellaband, Prime Technology Ventures expects the company to ‘change the face of the music industry’. Managing partner Sake Bosch says: ‘We believe in the concept and the longevity of the Sellaband model, and so investing in the company makes complete financial sense.’

Sellaband’s business model entails establishing a direct relationship between ‘believers’ in new bands, who can buy shares for as little as $10, and the artists themselves. Once money raised reaches $50,000, Sellaband helps the artists fund the professional recording, distribution and marketing of an album.

Led by CEO and co-founder Johan Vosmeijer, the Netherlands-based company has partnerships with beer giant Heineken and online retailer Amazon.

Prime Technology Ventures invests in hardware and software technologies in wireless, networking and the internet, with a particular focus on the Netherlands, Finland, Sweden, Israel and the UK.

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