The potentially nefarious intentions of VC-created content — A tech reporter weighs in

In chatting with Kia Kokalitcheva, we learned a lot about the trends around tech journalism, and how she gets to the core of a story in the first of three articles based on our chat. What was most interesting were some of her perspective on the changes in the Venture Capital industry, specifically their focus on content, and hiring tech reporters. While they’re putting out compelling and useful content, Kia raised some good points about some of the trouble this creates for the broader tech news industry, and the potentially nefarious reason Venture Capitalists (both Investors and Firms) are getting into content.

VCs have become content masterminds

As an industry that prides its potential to identify trends, Venture Firms have recently re-focused on marketing their own firms through creating content about tech and startups. Oftentimes, this content is really high quality, and would fit well on the pages of a traditional tech publication. This is just one group that’s pushing the boundaries of who Kia considers who her peers are, with an expanding array of people and organizations, from VC firms, to startups, to large tech companies writing articles and creating content oftentimes similar to her own. The focus on content marketing from VC firms has ramped up, and shows no sign of slowing down — and for good reason.

“They want to come off as looking very smart and they want to share well written, well thought out blog posts with trends or analysis and entrepreneurs see them and say to themselves “Wow, they’re so smart. We want to work with them and have their money and known startup” and so a lot of this is really just them marketing themselves. Investors are investors, why should you pick one or the other.”

The people inside venture firms were the first to identify the potential value of writing and sharing their insights publicly. More recently firms have recognized the power in this content, and many have ramped up doing so, buildling publications and even platforms to help distribute it. There’s YC’s new The Macro publication, The First Round Review from First Round Capital, Sequoia’s Build content, and USV’s social sharing Threads platform. The content created by these firms and their partners has become a real driving force in building the narrative around tech today.

The problem with VCs controlling content

While beneficial, Kia believes there’s a potentially nefarious reason for why firms are creating this content, bringing what would otherwise have involved a reporter like Kia inside their own walls.

“The whole idea sort of circumventing the traditional press and not having to let us decide what we will be published and what won’t be published. If they can have a blog and write whatever they want to write on it, why not? They absolutely have control of that information and how it is presented and so that’s one and two a lot of this is really them marketing themselves to entrepreneurs.

Could VCs be subverting discussion and coverage of their companies that might offer a more rounded, unbiased perspective on the companies that pay their salaries? Potentially, but the reverse also stands for some discussion.

“They’ll sometimes write about their latest investments, but it’s not necessarily something they will want to talk to us about. They just want to have their own blog post with their own words and that’s great.”

In covering the companies they invest in directly, firms are able to pull their companies out of the shadow of broader industry or product category norms that dominate the tech news cycle, allowing the uniqueness and success of the company to shine.

Poaching talent happens outside startups too

The trend of journalists joining venture firms isn’t new, but it seems as the pace has picked up recently. Thirty years ago, back as 1986, Mike Moritz joined Sequoia. His career has been recognized as the leading example of how an individual with a journalism background is highly suited to being a VC. More recently MG Siegler moving to Google Ventures in 2013. And now, with the focus on creating content along with the new ‘everyone is a partner’ models at firms, journalists are getting more and more opportunities to join firms, and in powerful positions too.

What is it that makes the skills a person picks up as a journalist so valuable in becoming a venture investor? Kia believes that the roles are actually quite similar, and both types of people share one characteristic — you might call them a bit of an adrenaline junkie.

“…we both get these really early advanced looks at these potentially promising startups or promising founders or ideas or products. It’s sort of the excitement and the thrill of potentially discovering a gem and I think both categories of people do that in their own way.”…”Then we also use some of the same, I don’t know if I want to call them skills, but the whole idea. That spidey-sense of what might be interesting or what has potential. Obviously investors will take a little bit more data into consideration as much as it exists really. I think they are very similar actually and people probably get some of the same thrills and excitement from it.”

Another, often unspoken benefit that venture firms get when they bring on a reporter? Access to their network.

“Then I think a lot of people won’t necessarily admit that, but I think when you hire a reporter, especially one that has a well known reputation, there big brand names. That will almost draw it’s own deal flow. Founders and entrepreneurs and startups will recognize it and will come to them. I think there’s probably a small unspoken bet that this brand will bring its own kind of quality flow of startups.”

The value of a network in venture is a constant point of contention, with people citing things like AngelList and the explosion of new funds as negating the value of deal flow. Kia’s point is an interesting one, that points to the idea that it is still an important ingredient in the success of a firm, something they’re willing to pay up for.