The sale of the Dutch fan-funding engine 'expected to be completed soon'

Sellaband the company helping musicians raise money to record albums via fan-investment, has filed for bankruptcy.

Launched in 2006, the company connected fans to acts, with their investment being exchanged for copies of the album, exclusive gigs, and even a share of the profits, depending on how much they pledged.

As previously reported, Public Enemy signed a deal with Sellaband to raise $250,000 to help record their new album. While initial investment was good, the rap group raised just over $70,000 by the end of 2009.

Despite the Dutch firm filing for bankruptcy, trustee Paul Schaink has announced that the sale of the business is “expected soon, in order to make a fresh start”.