Scoring Money from an Online Crowd

Crowdsourcing to raise cash for creative artists is catching on, but the model may not apply as well to entrepreneurs seeking venture funds

The popular Dutch gothic-rock band Nemesea wanted a record deal but had struck out with major labels. So when they heard about SellaBand.com, which launched in August, 2006, they signed up. The Dutch Web site promises to connect underground musicians with enough fans to finance a professional recording. Its crowdsourcing process appealed to Nemesea because it meant that instead of trying to convince one deep-pocketed record company to invest, a wide pool of fans could be recruited for small buy-ins (see BusinessWeek.com, 1/18/07, "Tapping the Wisdom of the Crowd").

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