I'm quite proud about spotting and writing one of the first articles (way back in early September 2004) on the trend of VCs taking to blogging. I wrote about it here at the Venture Intelligence India blog as well at Always-on Network.
My article was followed up in the San Jose Mercury News on September 21, 2004. And now, Venture Capital Journal has decided that the trend is important enough to make it as their cover story for the first issue of 2005.
"In the not-too-distant future most venture capital firms will have at least one blog. They will be as common as websites, but far more useful. Venture capital, when all is said and done, is a relationship business. And blogs, by their interactive nature, foster relationships and bring together like-minded people," writes Lawrence Aragon, VCJ's Editor in his leader. "If an entrepreneur has two similar term sheets in front of him, wouldn't he be more attracted to the one from the VC who has shown (through his blog) that he truly understands a particular market or technology?" he adds.
The VCJ issue includes comments from active VC bloggers about their blogs. For example, here is Brad Feld (in my opinion, the best VC blogger out there right now):
Tom Stein's article in the same issue, points to some potential negative effects of VC blogging. "Some entrepreneurs may take to holding back details or simply avoiding certain VCs if they believe their private conversations will later be broadcast to the world in the form of negative blog postings". "It worries me that some entrepreneurs may have the perception I'll write something negative after they pitch me," Dave Hornik of August Capital says in the article.
The article also points out that most VC bloggers are also voracious readers of other people's blogs and consider tracking blogs as a very efficient way to stay abreast of trends and viewpoints they would not normally find in newspapers or trade magazines.
Arun Natarajan is the Editor of TSJ Media, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of TSJ Media's Venture Intelligence India newsletters and reports.