Rustic Canyon

Rap artist MC Hammer, who declared bankruptcy in 1996 with almost $14 million in debt, is looking to build a new fortune.

The rapper is known for bringing rap music to mainstream audiences in the 1980s and early '90s through his flamboyant dance moves. He's back in the public eye with a company he co-founded called A Large Corporation Inc. The Menlo Park, Calif., company is developing a Web site called DanceJam.com that soon will allow people to engage in virtual dance competitions by posting videos of themselves dancing. It also will offer instruction in the newest dance moves.

DanceJam plans to generate revenue from advertisements as well as merchandising. There is also the possibility of selling music or partnering to sell music on the site, says Mark Menell, partner at Rustic Canyon Partners, an investment firm that led a $1 million round of founding for DanceJam.