Musician Crowdfunding Site Bankrupt

It’s been circling the drain for awhile.

And now, it’s happening. PledgeMusic, the direct-to-fan crowdfunding platform for musicians is declaring bankruptcy.

Busking_winter_FB

The site has been withholding donations pledged to musicians for months.

Co-founder Benji Rogers, in a letter published yesterday, announced that the efforts to sell the company have failed and that it plans to use the donated money to pay off the company’s creditors rather than be given to the targeted musicians. This will result in donors not receiving the perks advertised. Musicians will possibly be able to list as creditors in the liquidation proceedings.

Billboard reports that:” No details have been given about causes leading to PledgeMusic’s financial insolvency, but a former employee told Billboard in January that artists’ crowdfunded money had gone to fund ongoing operations instead of holding it “on account.”” That could result in criminal liability for company management.

https://www.billboard.com/articles/business/8510697/pledgemusic-crowdfunding-platform-headed-for-bankruptcy

Advertisements

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.