CD Swapping Site Lala.com Gets $9 Million Funding

Yes, some seriously silly money is still floating around: Lala.com, a Palo Alto start-up is launching a service that is a mix of social networking, Internet swap meet and music store. The site/company has received $9 million in venture funding from Bain Capital Ventures and Ignition Partners.

It presents itself as an online music co-op that allows members to trade in CDs in exchange for those they want from others. Those who want to obtain the used CDs must be willing to trade CDs from their own collection. Members pay $1, plus 49 cents in postage. Lala.com will funnel 20 percent of revenue from the trading of used CDs back to the artists.

Consumers will also have the option of buying new CDs, and, eventually, digital music. Members are encouraged to write reviews of CDs and join an online community of like-minded music lovers.

And who else but the always-reliable Techdirt rips apart the company’s model, here

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