MyBandStock is an Ann Arbor startup that enables you to buy 'stock' in bands. The bands set up a funding goal for a project like recording an album, and once they reach the goal the site directly pays the supplier of services, such as the recording studio. This way, investors know the money will be spent on the goal that was presented, rather than booze or swimming pools filled with Jello.
Interestingly, there is no idea of the investors actually owning a part of the band's earnings and therefore achieving a monetary return on their investment. Instead they are meant to be offered 'perks' like downloads, CDs, signed t-shirts, personal phone calls, and so on. In this way it's almost like a paid fan club, but the added dimension of the band getting an advance from fans rather than a record label is compelling.