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August 22, 2006

Why VC Investment in Blogs Is Dumb

On the same day you have articles about VCs seeing a huge opportunity in blogging and blogs making $60,000 a month in ad spend.

Mark Cuban flamed Jeff Jarvis for hating on Mark’s new blog Share Sleuth, which is a blog about trading stocks in companies they uncovered dirt about.

If it is wrong for bloggers to buy and sell stocks based on their market influence then why is it right for companies to be able to buy and sell the influence of media?

The real issue is that as soon as you take on investment a blog loses a bit of that cozy feel, and then the numbers matter more than the feeling. Which sucks, because for about every bad thing I have ever written “bad as in as noted from business friends much smarter than I” I have also had other people compliment me.

When competing with large established business interests that will eventually buy into new technologies all you really have as a competitive advantage is your authenticity. If the numbers get in the way you lose.

I am sure some companies that buy into blogging will make money from it, but most of the bloggers willing to sell are not writing with real passion. The day they sell is the day the concede their passion, IMHO.

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