This CD Brought To You By AARP?
August 24, 2007 at 5:45 AM (PT)
Past-their-prime rock bands are used to being ignored by record labels and mocked by the music press. In BRITAIN, however, they've found a new groupie: venture capital, reports THE WALL STREET JOURNAL.
A boutique LONDON investment bank, INGENIOUS MEDIA PLC, is financing comeback albums. Last month, it signed UB40, the band that had the #1 hit in 1988 with the song "Red Red Wine." Another artist working on a CD for INGENIOUS is PETER GABRIEL. "We know we have a great fan base who will buy the record if you tell them it's out there," said MIKE LARGE, COO of GABRIEL's management company, REAL WORLD HOLDINGS LTD.
DAVE GOLDBERG, a music entrepreneur at BENCHMARK CAPITAL, a U.S. venture-capital investor, says it's too early to say if INGENIOUS' approach will take off in the U.S. "But we are going to see more and more of these different ways of creating financing for bands," he says.