October 22, 2007

Venture Capital Blogging

The Boston Globe had a very interesting story in late September about venture capital firms and blogs, which I didn't see until yesterday. Scott Kirsner, who writes the paper's weekly "Innovation Economy" column focusing on entrepreneurship, technology, and venture capital in New England, reports:

There's a bifurcation happening in the Boston venture capital world: Some firms blog, and some don't. And the divide isn't just about being hip to the latest trend. It signifies an important shift in the way VC firms interact with entrepreneurs.

The typical old school, non-blogging VC firm has an office at the Bay Colony Corporate Center in Waltham, a phalanx of assistants, polished wood conference room tables, and an endless supply of bottled water.

The partners are comfortable relying on existing networks to introduce them to promising entrepreneurs. When an entrepreneur gets an opportunity to ascend the temple mount and pitch her start-up, she's expected to know what the partners are interested in by talking to other entrepreneurs or reading the tea leaves of the firm's past investments.

By contrast, VC firms that maintain blogs tend to use them to write about the sectors they're most interested in or share advice with entrepreneurs. By letting anyone post comments that challenge the blogger's opinions, VC blogs place their authors on a level playing field with entrepreneurs. The act of maintaining a blog, when done right, communicates openness: It's a conversation, not a monologue.