Losing Velocity? What Does Jon Miller's Defection Mean for VC Firm?
Early Saturday morning, Ross Levinsohn confirmed reports that Jon Miller -- his investment partner for the past several years and former CEO of America Online -- is heading back to the operating world, as News Corp.'s new head of digital media. The deal isn't official yet, but is expected to close once Miller's non-compete with Time Warner expires this Tuesday at midnight. Most of the related coverage has focused on what Miller's move could mean for News Corp., but I'm more interested in the ramifications for Velocity Interactive Group -- a VC firm that Miller and Levinsohn helped form in late 2007, alongside the dysfunctional remains of ComVentures. My gut reaction is that it may prove fatal, particularly given Velocity's difficulty raising new money even with Miller. On the other hand, it's also possible that Miller's presence was a double-edged sword for certain LPs, given his well-known (and now indisputable) wanderlust. Not that his departure is a net positive, but perhaps it's more a flesh wound than a death blow.
