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 I should spend more time traveling between San Francisco and New York. Last year, I obtained one of my biggest scoops when I overheard some Google executives brainstorming ideas for their company's health initiative. On Thursday, while waiting in JFK's Red Carpet Club, I overheard bits and pieces of an evolving venture capital news story that makes more sense today.The two men sitting adjacent to me were carrying computer bags with the ComVentures logo on it. I was getting ready to head to the gate when I heard one of the men talking on his mobile phone about the formation of a new fund. I decided to prolong my stay by just a few extra minutes while I visited the ComVentures web site to ID him. I believe, but am not 100% sure, it was Roland van der Meer. He was with David Britts. Today, those two Comventures' general partners --along with Kevur Patel-- merged their firm into Velocity, the firm founded earlier this year by AOL-veteran Jonathan Miller and former Fox exec Ross Levinsohn. With their impressive pedigrees and top notch connections, I was curious what Miller and Levinsohn duo could achieve. They initially spoke of working with General Atlantic to roll up media companies. That's why today's announcement to merge with ComVentures is such a disappointment. I expected Miller and Levinsohn's unique vision to create something exciting in the world of new media. Instead, they're now outnumbered at their firm by partners have spent the past decade at a Silicon Valley firm that never found its stride. Maybe, it's the money. ComVentures brings with it a flow of management fees in addition to ties to existing LPs. The merged firm, Velocity Interactive Group, hopes to close a fund next year and it seems their recent trip to New York helped them secure commitments of about $40 million from LPs. Whatever the reason, Miller and Levinsohn have come down to Earth. It should serve as a warning to those considering leaving their corporate jobs to start a new venture capital firm. Corporate ties and industry expertise aren't enough. You must be plugged into a circle of entrepreneurial activity and institutional money to have a chance. - Joshua Jaffe
Comments
From: Josh Jaffe,
Well, you know what they say: VC is the new Rotary Club. Actually, let me help you put the pieces together. One of the most important things a VC brings with them are connections. Presumably, sitting at or near the top of two of the most important media companies in the world enabled Jon Miller and Ross Levinsohn to build up far reaching relationships to media and technology leaders. Another important characteristic a VC can bring to portfolio companies, their partners and LPs is industry expertise. Again, this duo's understanding of the media industry is deep. It's hard to say who is responsible for what in a large and complex organization. What seems clear is that Miller and Levinsohn lacked the will and/or ability to raise money and learn the ins and outs of the business of venture capital. Instead, they decided to find partners to do that part for them.
Posted on:
December 19, 2007 12:30 PM
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by what measure do messrs miller and levinsohn have "impressive pedigrees"? mr miller was a huge failure at AOL and was unceremoniously (some would say offensively) and quite publicly dumped. mr levinsohn had something to do with the myspace acquisition, sure, but does anyone believe it wasnt ruport murdoch personally managing the deal (remember: at the time, social networks were seen as a huge risky thing and myspace deal was universlly seen as overpriced). then with all his success, mr levinsohn does what? leaves. (or was fired, as is rumored.)
beached whales look impressive for a few minutes, then they just look like big floundering piles of blubber flailing before dying