Startups

MG is now a VC

It’s pretty cool to see today that MG Siegler (@parislemon) who most of us know as a writer on TechCrunch, has decided to make a career move toward venture capital by joining Michael Arrington’s CrunchFund.

I think its great for MG and great for the future startups he will invest in, he will be able to provide them with unique insights on how to work with the press industry and much more.  He’s even speaking on how to work with the press in his talk at Future of Web Apps in London, a topic that is near and dear to my heart.  It also lead me to reflect on something a lot of people in the community have probably contemplated now and again – becoming an investor in startups ourselves.

Considering the VC Route

It is something that has come up for me several times, but there were a few meaningful moments where I truly thought I could see myself going to “the dark side”.  As it turns out, on the other “side” of the tech industry there is a young up-and-coming stable of investors who might be the next tier A financiers of startups, and the prospect of being part of that crowd is exciting.  Some of these people are younger than me!  This cast of rising stars really matters to startups, who look to venture capitalists for the cash infusions that can make their company’s possible and massive growth pre-revenue feasible.  I ultimately have chosen, a few times now, to stick with building companies (and I love the one I’m with) but the allure of helping startups who are worthy connect with the capital they need to grow is definitely exciting.

The Persona of a VC is Changing

In the past year, with the rise of “super angels” there has definitely been an increase in transparency around the process of getting investment.   Not only are VCs and angels more exposed than ever, but the entire ecosystem is becoming accessible, all the way up to the LPs and endowments that ultimately provide money to these funds and all the way down to AngelList where private individuals with access to capital for investments can connect with entrepreneurs seeking funds.

I don’t think CrunchFund will be the last VC firm created that puts capital in the hands of web influencers who have great visibility into what’s being done in the land of startups.  In fact, I wouldn’t be surprised to see 2012 be the year that disrupting VC becomes a mainstream trend, whereas in 2011 it was something localized to Silicon Valley with Angel Gate and all that other noise.

Putting Cash Into the Next Great Startup Story

I’ve always thought begin a VC was very similar to being a producer of films, reading scripts and deciding what to make and what not to make.  In that same way, each startup pitch is a script to be read, each investment is a chance to put another great story into production.

I hope MG enjoys the crystal ball, energy, and passion of the entrepreneurs behind the deals he looks at.  I can’t wait to see what he’ll choose to invest in, and how he’ll bring his unique talents and passions to help startups find success.