The tech world is all aflutter today because Michael Arrington has created new a $20-million venture capital fund to invest in start-ups.
Given Arrington and the growing army of TechCrunch bloggers cover start-ups, there is clearly ethical and journalistic issues given TechCrunch could easily write about companies within CrunchFund’s investment portfolio.
A few things: One, the objections over Arrington’s involvement with start-ups as a blogger and an investor are nothing new. Arrington has been happily fishing in both ponds for years, and been pretty clear about his activity. Why would anyone would be surprised by the formalization of something he’s been openly engaged in?
Arrington is a different and unique beast because blogging is a new world with different rules of engagement than journalism, and, let’s face it, the vast majority of journalists don’t make enough money to invest in start-ups even if they wanted to. At best, journalists jump into the start-ups for the remote chance to make some money – and I’m talking from personal experience.
What I admire about Arrington is he seems unrepentant and unaffected by the kerfuffle he has instigated. Call it arrogance, hubris or being king of the world (or, at least, Silicon Valley) but Arrington is completely comfortable in his own skin.
“I don’t claim to be a journalist,” Arrington told the New York Times. “I hold myself to higher standards of transparency and disclosure.”
This holier-than-thou attitude rankles journalists and hard-core bloggers who play by the old style “rules” but AOL seems fine with Arrington’s new venture, although I suspect it will bend over backwards to keep him in the AOL fold as long as possible.
That said, I think it’s time for Arrington to leave TechCrunch. It’s the classic case of not being able to eat your cake and have it too. TechCrunch has been a spectacular success, and Arrington has achieved fame, glory and riches from selling the business to AOL for $20-million.
But if Arrington really wants to take his career into a different direction, he needs to leave TechCrunch behind. It will be difficult because it’s his baby that he built from scratch but TechCrunch is all grown up now, it has a new mega-size owner, and Arrington would be better off completely focused on new projects instead of still hanging on.
The reality is the Arrington brand is as big as TechCrunch so he doesn’t need TechCrunch, even though they are still stuck at the hip. If Arrington wants to be a venture capitalist, it means making difficult decisions, including parting ways with TechCrunch.
More: Kara Swisher has some interesting insight (surprise, surprise!) about Arrington and CrunchFund.



