If the business pans out, DanceJam could help Hammer compensate for going bankrupt in 1996 with nearly $14 million in debts.
The bankruptcy was a sobering comedown for Hammer, who parlayed the popularity of his once-ubiquitous song, "U Can't Touch This," to become a pop icon in the early 1990s. Besides becoming a fixture on MTV, Hammer appeared on kids' lunch boxes and even had his own action figure.
Although Hammer isn't churning out best-selling records any longer, everyone still seems to know his name. Even children born after his downfall are familiar with his music because "U Can't Touch This" still gets played in TV shows and movies.
But Hammer's involvement in DanceJam has more to do with his technological savvy than his celebrity, said Ron Conway, a longtime Silicon Valley investor who is part of a small group that provided DanceJam with $1 million in start-up funds.
"I expect him to integrate all his knowledge into this website," said Conway, who befriended Hammer at a baseball game seven years ago and has been tutoring him in the ways of technology ever since. "He is the lightning rod for this whole thing."
Hammer, 45, started poking around Silicon Valley while he was still selling millions of records. He often hung out at computer makers like Silicon Graphics Inc. and Apple Inc., hoping to learn more about how technology might help his music career.
"There is no high-tech lingo or business strategy that you can talk that is above my head," Hammer boasted during an interview. "I breathe this stuff."
Hammer's entrepreneurial roots date back to the 1980s when he began recording songs with financial help from a few Oakland Athletics, for whom he once worked as a ball boy. His nickname came from his resemblance to the former home run king, Hammerin' Hank Aaron.
Without the support of a major music label, Hammer built a loyal fan base, hitting the street and selling his early recordings from a car.