U.K. rock act Scars on 45 has graduated from fan-funded Web platform Slicethepie to sign a multi-album deal with Atlantic Records/Chop Shop Records.

London-based Slicethepie is an online platform that enables acts to secure direct funding from its fan base, in return for a copy of the album, exclusive artist offers and a possible return on any investment. The standard deal is a return of 10 pence (16 cents) on every £1 ($1.63) invested for every 1,000 albums sold.

The Atlantic deal triggered a buyout clause and fan shareholders were bought out at a 50% premium to the then market price.

"This is significant progress for Slicethepie and demonstrates the potential power of a democratic, fan driven online process to source talent," said Paul Brown, U.K. managing director of Spotify and Slicethepie non-executive director, in a statement. "This deal reinforces the value that Slicethepie and its sister business SoundOut can add to the business of finding and financing talent."

SoundOut is a consumer insight and analytics service for recording artists and record labels.

David Courtier-Dutton, Slicethepie CEO, added: "We are delighted for both the band and their fans who, in this case, have truly been instrumental in their success. We believe that consumer driven filtering has an increasingly influential role to play in the future of the industry enabling talented artists to access an ever widening range of commercial opportunities."

The deal was brokered by music supervisor Alex Patsavas, who worked on the "Twilight: New Moon" album and selected music for "The O.C.," "Gossip Girl" and "Grey's Anatomy."