VC Rating: LaLa.com (Tech Confidential

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VC Rating: LaLa.com

[Posted on March 9, 2006 - 1:52 PM]

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Company: LaLa.com
Description: Online CD trading network.
Competitors: None, although Peerflix facilitates online DVD trading
Location: Palo Alto
Amount raised: $9 million
Round: First
Date announced: 3/7/06
VC firms: Ignition Partners, Bain Capital Partners
VC directors: Rich Tong, Michael Krupka
Quick Take: Like all good serial entrepreneurs, Bill Nguyen, founder of LaLa.com is in la-la land to think his idea is going to work. People aren't going to go through the trouble of trading for a CD just to get the one good song off of it when they can pay 99 cents to obtain that one song immediately. The entire premise of LaLa.com is based on the false idea that people want to procure CDs. But, the success of iTunes shows people are increasingly interested in singles because all but the greatest albums are populated by filler. — Joshua Jaffe

Technology (1 out of 10): 2
Market (1 out of 10): 6
Management (1 out of 10): 7
Chances for IPO (1 out of 10): 1
Overall VC Rating (1 out of 10): 1

For more on LaLa.com's fundraising, see: The Deal, TechDirt
Beta test LaLa.com's service

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