Virtual world Stardoll turned 5 today, now serving over 100 million registered users. Based in Sweden, Stardoll claims to be the world’s largest online community for girls who love fashion.  Stardoll evolved from an earlier Website called Paperdoll Heaven, designed to serve paper doll enthusiasts. As the site grew, it relaunched in 2006 as Stardoll with backing from Index Ventures and Sequoia Capital. Stardoll is profitable and generates revenue through sale of virtual currency. Stardoll generated over $14 million in revenue in 2009 alone.

Stardoll’s users are primarily girls between the ages of 7 and 17. The site emphasizes letting girls express themselves through designing and purchasing clothes for their paper doll-like avatars. In addition to selling virtual currency, Stardoll also monetizes through brand promotions that often feature branded virtual goods and in-world locations. Stardoll has run promotions with brands including JCPenney, Xbox 360′s Kinect, Random House, Burger King, and OTTO.

[via Arctic Startup]

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