The business, run by Midlands entrepreneur Adam Driscoll, started life as a single venue, the Barfly, which is run from the back room of a north London pub.
The Barfly is legendary as a venue where up-and-coming bands perform. It has hosted gigs from the likes of Oasis, Catatonia and Skunk Anansie before they became famous.
Channelfly.com has signed up 16 other venues. It will film and record concerts, broadcasting them over the internet and via a radio show that goes out over 43 student radio stations.
The company will charge people for viewing its webcasts but will also own the rights to each concert. If it unearths another Oasis, the footage will be worth millions.
The company is raising pounds 2.5m from investors. Its sponsors, SG Securities, expects it to have a market value of at least pounds 12m.
Mr Driscoll will be chief executive and James Wyllie, former manager of the Eurythmics, will be chairman.