FORTUNE -- Last spring we wondered about the future of CrunchFund, the early-stage venture capital firm led by TechCrunch founder Michael Arrington:
Some in Silicon Valley have whispered that Arrington is sitting at home in Seattle with his feet up, resigned to the notion that CrunchFund was a blogger's failed investment experiment. Yesterday those rumors got even louder, with news that one of CrunchFund's three partners -- MG Siegler -- had quit to join Google Ventures. From what I can tell, however, such speculation is totally unfounded...
To date, CrunchFund has invested just over half its capital into more than 80 companies. Ten of them already have experienced liquidity events -- including "acqui-hires" -- while only one has been written off. The current internal rate of return (IRR) is somewhere between 20% and 30%. That data signifies two things: (1) CrunchFund doesn't actually need to raise a second fund yet, with plenty of dry powder in the till; and (2) CrunchFund should be able to raise a second fund when it does go out, based on performance.
Seems we were right.
CrunchFund today revealed in an SEC filing that it is in market with fund number two. The document suggests a $40 million ceiling, but my understanding is that CrunchFund actually is targeting around $30 million. That's basically the same as the $28 million it raised for its first fund.
More importantly, my source says that CrunchFund already has held around a $25 million first close for the new fund, which includes a new commitment from founding investor AOL (AOL). No word yet on if many of the Silicon Valley venture capital firms that backed the inaugural CrunchFund came back for seconds -- although it's possible that they'd be in a susequent close.
CrunchFund has made more than 115 investments, including notables like AirBNB, Redfin, Path, Uber and Yammer (acquired by Microsoft). Most of its recent deals have been between $100,000 and $500,000 for early-stage companies.
Michael Arrington declined to comment, likely due to SEC marketing restrictions.
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With nearly 100 portfolio companies and just two remaining partners, what is the future of Michael Arrington's venture capital effort?
FORTUNE -- It has been 20 months since TechCrunch founder Michael Arrington launched CrunchFund, a venture capital firm that had the blessing of AOL, the company that had purchased TechCrunch one year earlier. Until AOL changed its mind, and Arrington was fired. Until it changed its mind again, and he rejoined MOREDan Primack - May 7, 2013 3:23 PM ET
It's way too early to know if MG Siegler will be a good venture capitalist. But he certainly is reflective of its future.
TechCrunch blogger MG Siegler yesterday announced that he was trading in his keyboard for his calculator, agreeing to join former boss Michael Arrington as a partner in CrunchFund. I did a quick Q&A with MG about the move, which you can read here.
Upon first hearing the news, I tweeted that 29 MOREDan Primack - Oct 4, 2011 10:15 AM ET
How MG Siegler's blogger past will help, and possibly hinder, his new career as a VC.
Twenty-nine year-old tech blogger MG Siegler is making the move from journalist to venture capitalist, agreeing to join his former TechCrunch boss Mike Arrington at the recently-formed CrunchFund. Siegler was in London last night, so I sent him a few questions via email. Here's the back-and-forth:
Fortune: In his TC post about you leaving, Erick wrote MOREDan Primack - Oct 4, 2011 6:08 AM ET
No venture firm has gotten more attention over the past month than CrunchFund, the seed-stage vehicle that precipitated Michael Arrington's departure from AOL (AOL). But Arrington is not alone in CrunchFund. His partner is Patrick Gallagher, Arrington's former college classmate who most recently was a principal with VantagePoint Venture Partners.
Below is a recent Bloomberg TV interview with Gallagher, in which he discusses the fund's purpose and what the AOL/TechCrunch debacle MOREDan Primack - Sep 29, 2011 1:23 PM ET
Last Wednesday, Fortune reported that AOL and TechCrunch founder Michael Arrington had decided to part ways -- following a messy dispute revolving around a VC fund that Arrington had launched with AOL's consent and investment. Today, AOL (AOL) made it official.
In a brief statement, the company said:
"The TechCrunch acquisition has been a success for AOL and for our shareholders, and we are very excited about its future. Michael Arrington, the MOREDan Primack - Sep 12, 2011 12:13 PM ET
Venture capital is rife with conflicts of interest, and it goes far deeper than blogger relationships.
I recently had a conversation with a Boston-area journalist who couldn't understand how some of his Silicon Valley peers – and I emphasize some – were comfortable with the proposed conflicts of interest inherent in Michael Arrington's CrunchFund. The answer, I suggested, was more about venture capital than it was about media.
Here's what I mean: MOREDan Primack - Sep 8, 2011 11:55 AM ET
Not TechCrunch editor. Not AOL Ventures employee. Michael Arrington is on his own.
It has been a very long week for AOL. And it's about to get even longer.
Last Thursday, word leaked that one of its employees, TechCrunch founder Michael Arrington, was launching a venture capital fund that would include an $8 million commitment from AOL (AOL). Then came a more official version via the NY Times, which included positive quotes MOREDan Primack - Sep 7, 2011 9:10 PM ET
If you're not caught up on the CrunchFund debacle, the the Taiwanese animators at NMA have summarized the story as only they can...Dan Primack - Sep 7, 2011 11:24 AM ET
Tech blogger Michael Arrington might be in limbo, but someone else has lost more in the CrunchFund debacle.
It's now been five full days since CrunchFund was unveiled, and no one is coming out of this mess looking worse than Arianna Huffington.
Various reports suggest that she's furious with the implicit breaching of AOL's editorial ethics, and wants Michael Arrington not just banished from AOL editorial, but from AOL (AOL) as a MOREDan Primack - Sep 6, 2011 9:22 PM ET
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