Following the technology Venture Capital space, what VC’s say and how their firms rank is fascinating, especially for me: I’m starting the process for an early stage round of finance.
Recently, two respectable rankings caught my attention. First Larry Cheng at Fidelity Ventures published the Global VC Blog Directory, as ranked by the number of Google Reader subscribers. A few weeks later, TechCrunch published The Top 100 Networked Venture Capitalists, a list influenced by the firm’s network, “defined as being made up of all the other venture firms who co-invested with it in funding rounds”.
Both lists offered insights, but I did not see an immediate correlation. Only 21 companies appeared on both lists. Whereas the Google Reader list had a definite social media bias, the TechCrunch list was anchored in the realities of actual deals.
So, I decided to merge the two lists by re-computing a normalized score from the Google Reader and combining both scores. That, in essence should provide a balanced view that takes into account both the online social footprint and deal-based networking clout.
Going forward, I believe the wind is favoring the social media footprint and online social networking. A VC company with a strong online social network should be able to translate that power into an increased deal flow and more quality deals.
Here are the results of the combined ranking. And if you’d like to follow all these companies blogs, their deals, and the Tech VC industry as a whole, we’ve set-up an Eqentia TechVC vertical news environment to do that. Expect about 100-120 new stories per day, and you can personalize email alerts per semantic Connection for any VC, company, issue or relevant topic. On Twitter, it’s @techvcnews.
Rankings, based on combined, normalized score:
- Union Square Ventures (7608)
- Draper Fisher Jurvetson (6981)
- First Round Capital (6417)
- Benchmark Capital (5587)
- Marc Andreesen (4416)
- Bessemer Venture Parners (4228)
- Charles River Ventures (4140)
- Lightspeed Venture Partners (3585)
- Index Ventures (3537)
- Mayfield Fund (3325)
- Sigma Partners (3255)
- SAP Ventures (2966)
- Venrock (2942)
- Fidelity Ventures (2865)
- Atlas Ventures (2359)
- Mohr Davidow Ventures (2300)
- Spark Capital (2171)
- Polaris Venture Partners (1960)
- Sutter Hill Ventures (1813)
- Battery Ventures (1519)
- Bluerun Ventures (1473)
Do you think this provides the right balanced view?
Which is more important: social media networking or deal-based networking?
Does one drive the other and are they equally synergistic?
Footnote on method:
. The Google Reader score was normalized down to match the TechCrunch score. For e.g. Guy Kawasaki’s score of 17,555 was divided by 2.61 to match 6,721 given to Draper Fisher Jurvetson, the #1 VC on TechCrunch’s list. All other scores were normalized by the same factor, then both scores were added
. Whereas a firm had more than 1 blogger or blog that appeared on Cheng’s list, their combined score was utilized because that represents the overall social media footprint for that firm.