No Record Deal? Float A Company

In 2003, a British racing driver, Justin Wilson, succeeded in securing a paid racing drive in the (then) Minardi Formula 1 team. Because the Minardi team did not have sufficient funding, it required Wilson to cough up 1.2 million pounds to get the drive. Wilson did this by selling shares in him to the public to raise the funding required. Unfortunately, the Briton remained in F1 for just that lonesome year, so it is unlikely that the nearly 900 shareholders made much money out of the deal.

In a similar move, indie band Francis And The Lights, have incorporated a company (Francis and the Lights, LLC) which has raised ‘capital’ of $100,000 from The Normative Music Company. The investment means that, unlike other bands signed to record labels, FATL are not creatively answerable to anyone. With a valuation of $1,000,000 the band/company does its business with the promise of a profitable enterprise leaving all creative control to the members/owners.

It’s a bold step taken by the band and one that can work for several Indian acts who can sell themselves to such ‘VCs’ without really selling out.