In the latest twist on fan-funding business models, metal act Queensryche is offering followers a chance to share in future revenue that the band generates.
For a minimum investment of $50,000, anyone who passes an independent accreditation process can purchase an equity ownership stake from a private consolidated holding company that entitles the investor to “a fixed percentage” of future revenue from such avenues as merchandise and music sales, according to attorney Marc LoPresti, who helped the band establish the limited liability corporation (LLC).
“There is nothing they do as a unit, as Queensryche, that fans who invest will not be a part of,” says LoPresti, noting the band is “only” raising $2 million. While he declines to reveal details like the group’s annual revenue and what percentage an investor’s equity stake will share in the band’s holding corporation’s income stream, a prospectus with that data will be provided to potential investors.
An internal board of directors comprising three bandmembers and counsel Thomas Osinski will oversee the LLC. They’re seeking an independent auditor to help ensure transparency.