The Fyzz, a London-based media firm, is launching a fund for sophisticated investors to invest in the production of music videos.

Raising funds through an investment vehicle called Elavid Limited, which has Enterprise Investment Scheme pre-approval from the UK’s tax authority, the fund will acquire rights to some 150 songs released before the music video revolution, and then go on to make official videos for these.

It will aim to generate revenue from sources such as online ad-funded websites, as well as licensing the videos for release through traditional broadcasting outlets.

“By creating official assets for classic songs, that in some cases are already receiving many online hits via user-generated content, we can create a real revenue stream from ad-funded video websites that are being viewed globally by millions of fans,” said Wayne Godfrey, the firm’s owner.

Open for investment from 5 April 2011, the fund will have a three- to five-year investment term. There is a minimum cash investment of £25,000 (around $40,000), and UK investors can access the tax benefits of the EIS scheme.

Other recent examples of investment vehicle launches in the media space include Ingenious Media Investments, which in January launched an entertainment fund for UK residents and trusts to invest in companies that produce films, video games and television programmes.