Vinod Khosla Backs Garageband, a San Francisco-based music community, holdover from Internet 1.0, has raised $2.5 million from Vinod Khosla’s Khosla Ventures and Bob “Daily Candy” Pitman, co-founder of MTV and former head of AOL. Other investors include Herbert Allen III of Allen & Company. Khosla and Bob Pittman will join the company’s Advisory Board alongside Talking Head Jerry Harrison, legendary producer Sir George Martin, and David Goldberg, head of Yahoo! Music.

The company is preparing to launch “iLike,” a new social music discovery service. The new iLike service will expand the company’s existing services by including mainstream artists, incorporating links among friends, and offering tools targeted at the iPod and MySpace generation. These new services, to be offered at iLike , will include a companion app for iTunes that allows consumers to organize their digital music libraries and discover new artists based on their listening habits. iLike will help consumers discover music based on what they and their friends like.