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Deal Radar 2008: Girls Like Stardoll

Posted on Sunday, Jan 6th 2008

Stardoll.com, formerly known as Paperdoll Heaven, is an online community for girls aged between 9 and17. It is a free online version of dress up dolls and is meant for those in love with fashion and style. The site features over 330 dolls and tens of thousands of virtual garments and accessories. It is now the No. 1 site for girls aged 9 to 17, according to comScore.

Key attractions include the ability to dress up celebrities and network with others. The MeDoll feature allows users to create a personalized doll that they can dress with merchandise from a virtual shop in its virtual galleria, the “starplaza.”

Stardoll.com has over 6 million unique visitors per month and registered users from over 200 countries. It is adding over 20,000 new members everyday and has above 10 million registered users. It is headquartered in Stockholm and has operations in Finland.

The site earns revenues from advertising. It also earns revenues from products offered by various companies in its virtual shop, bought and sold with StarDollars. The site sells between 60,000 to 180,000 items per day. Advertisers on Stardoll include major fashion brands like Donna Karan, LVMH and Sephora.

In June 2006, Stardoll raised $6 million in Series B funding from Sequoia Capital and Index Ventures. Earlier it had raised $4 million in Series A funding from Index Ventures and angel investors. They seem to have done remarkably well so far with only $10 Million.

Stardoll is a good acquisition target for companies that are targeting kids or teens, Walt Disney and Viacom being the top contenders. Yahoo is also a contender, trying to fill its gaping hole in the teen category. Another possibility is iVillage, a women-focused site that may want to catch the girls before they become women. Condenast, with its interest in Fashion, may also be also a logical acquirer.

My interest in Stardoll stems from the fact that pre-teens and teens directly and indirectly control billions of dollars in purchasing power, and Stardoll seems to have cracked the code on how to hook the girls.

It makes perfect intuitive sense – that girls would want to play with dolls and fashion – something I certainly enjoyed as a child. Number of users, therefore, will likely double this year, building an incredibly powerful community that the fashion industry needs to learn to leverage.

This segment is a part in the series : Deal Radar 2008


. MyStrands is MyChoice
. Kayak Consolidates Travel
. Trulia Can Consolidate Real Estate
. Girls Like Stardoll
. LinkedIn Should Roll-Up Jobs
. Zillow
. TheFind
. Wize Ranks Products
. Retrevo
. Piczo Picture Perfect
. Xanga Losing Steam?
. hi5 Going Strong
. Bill Me Later - Blessed by Amazon
. Takkle Tackling Socially
. Amie Street and the Twenty First Century Renaissance
. eHarmony Replacing Yenta
. Zappos Wants to be Amazon When it Grows Up
. Figleaves and Specialty e-Tail
. Twitter Gaining Momentum
. Tagged In Exit Freeze Danger Zone?
. Digg - Packaging news
. Facebook Woes Coming?
. PlayFirst Plays Casual Games Well
. Kosmix+Adify - Potential Google Challenger
. Travel Ad Network Executing Flawlessly
. Adap.tv Trying to Tackle the Video Ad Problem
. Groople, Interesting Use of Context
. Lucidera
. InsideView's Clever Maneuvering
. Seeking Alpha
. Adify's Market Taking Time to Develop
. Glam Media's Fashion Forays
. Federated Media Needs to Focus
. GigaOM
. TechCrunch
. Yelp
. Slide
. Elance
. oDesk
. SKS Microfinance
. TutorVista
. Seventymm
. Cleartrip
. Yatra
. MakeMyTrip
. Intacct
. Genius
. Xactly
. Jigsaw
. Comcast Buys Plaxo
. Encover
. PayCycle
. Bill.com
. Daptiv
. Inform
. PayScale
. Joost
. VideoEgg
. Mercado
. AKQA
. YuMe
. BitTorrent
. Geni
. Blurb
. Mimosa Systems
. Metaweb
. Brightcove
. Revver
. Cake Financial
. Mint
. Powerset
. UpTake
. PaidContent
. Mixpo
. Biz360
. Sabrix
. Coremetrics
. Revision3
. Care.com
. Appirio
. Metacafe
. Pandora
. Hulu
. Fabrik
. Flock
. Wetpaint
. ID Analytics
. Ning
. Telanetix
. Dimdim
. ON24
. Veodia
. Jive Software
. Realtime Worlds
. GirlSense
. LifeSize
. Grockit
. Playfish
. Nurien
. NTR Global
. AmberPoint
. Trion World Network
. PrimeSense
. Verticals onDemand
. Gaia Interactive
. PubMatic
. Mahalo
. Akoha
. Sportgenic
. IVT
. Turbine
. ImageSpan
. Entrepreneur Journeys
. Aggregate Knowledge
. Fliqz
. Elastra
. Challenge Games
. PivotLink
. iForem
. TopTenREVIEWS.com
. Operational Memory LLC,Raleigh, North Calorina
. FeedRoom
. GameDuell
. Fotolia
. EchoSign
. Mevio
. Local Marketers
. Baynote
. BlogHer
. Passenger
. Mobixell
. Wigix
. ExpertCEO
. Zyrion
. Archer Technologies
. SunRun
. NewsGator
. PermissionTV
. Creative Water Solutions
. Carbonetworks
. WiZiQ
. Regent , Frederick,Marryland
. ClickCare
. Studywiz Spark
. Saki Seat
. ShiftWise
. Neulio
. Revolabs

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I love stardoll so much!

IckyVicky Wednesday, January 23, 2008 at 9:24 AM PT

Truly keeps to the fun!

IckyVicky Wednesday, January 23, 2008 at 9:24 AM PT

All three of the advertisers you listed (Donna Karan, Sephora and LVMH) are actually owned by the LVMH group, so maybe it makes sense for LVMH to consider acquiring this company given the vast portfolio of other brands the group owns and the highly relevant segment the site targets.

Sudarshan Dharmapuri Wednesday, January 23, 2008 at 2:51 PM PT

I don’t see LVMH being in the new media business, even though they have dabbled (unsuccessfully) before.

Sramana Mitra Wednesday, January 23, 2008 at 6:02 PM PT

[…] I covered Stardoll in the Deal Radar series. Here’s the story from CEO Mattias Miksche. […]

Stardoll for Little Girls: Mattias Miksche (Part 1) - Sramana Mitra on Strategy Thursday, February 21, 2008 at 3:07 AM PT

Stardoll is not a good acquisition target because it violates the IP of celebrities. If Viacom or Disney bought Stardoll, they’d immediately be sued by the talent agencies or managers of the celebrities themselves.

Arianna Saturday, July 12, 2008 at 12:31 PM PT