Random Ramblings

Lots of news today, including another social networking deal and the narrowing of buyout bidders for Toys 'R' Us (which I never went to as a kid, because we had Spag's and something called Child World). So just time for a few quick notes:

** We have over 250 players for our March Madness contest, which means that there are just a limited number of spots remaining. If you still want to participate, the most open group ID numbers are 50961 and 50970, both of which use the "capital" password (but without the quotes). Remember, picks must be made before the first game tips off tomorrow at 12:20pm EST.

**An interesting little tidbit from the blogosphere, where SAP Ventures' Jeff Nolan yesterday noted the irony of Technology Crossover Ventures recently adding anti-spyware company Webroot Inc. to its portfolio, while also maintaining an ownership position in spyware producer Claria Inc. (a.k.a. Gator). For those who don't remember, Claria withdrew its proposed IPO offering last year, which delighted folks who don't feel companies should be rewarded for bad behavior. Anyway, Nolan made his quickie blog comment, and TCV took the unusual step of sending out their PR emissaries from Blanc & Otis to respond. Probably makes Jeff feel all warm, fuzzy and self-important but, hey, I guess he deserves it. Quite unusual for a company/firm to formally answer a blog, and perhaps could be opening a whole can of worms that will keep PR firm coffers overflowing for years.

A few quick points on the substance: Matt Marshall of the Mercury News referred to this as a "non-scandal," and he's absolutely right. He also got in touch with TCV, which I sincerely appreciate because I was five minutes away from making the same call at the expense of other work. The most interesting part of Marshall's piece is that Webroot was extremely concerned about letting TCV lead its $108 million Series A deal, because the Claria connection could generate an air of impropriety.

In order to jump the hurdle, TCV offered to remove Claria from the TCV website, which is why you can't find it there today (fellow Claria backer U.S. Venture Partners has not made a similar move, but it also hasn't inv*sted in an anti-spyware company). Nolan suggests that this is erasing the past, but I disagree. There is plenty of evidence that TCV is involved with Claria (Venture Expert database, old press releases via Lexis-Nexis, SEC filings), and if website removal is what got the Webroot deal done, so be it. Moreover, I'd almost be more impressed with TCV if they actually had intentionally backed both a spyware and anti-spyware company. Sure it's cynical, but it's also creating demand for your portfolio company's product (kind of like on 24 when the defense contractor tried starting the war by detonating a nuclear bomb in LA, except not nearly so heartless or fictional).

**I had promised myself that I wouldn't do any more traveling for a few months, but I've agreed to serve as a judge (one of twelve) at a prominent southern b-school's upcoming business plan competition. More info on this as it gets hammered out, but this should be quite enjoyable. Any advice from those who have done this before?

**Morgenthaler will announce tomorrow that it has opened a Boston office, to complement existing offices in Menlo Park, Princeton, N.J., Cleveland and Boulder, Colo. This one will be staffed by general partners Jim Broderick (VC healthcare focus) and Daniel Farrar (mid-market management buyout focused). Both men actually have been working from Boston for several months, but the formal announcement was delayed until Morgenthaler decided on physical office space (which took a while). Rather than going the Waltham route, they ended up at 545 Boylston Street, on the 9^th floor.

**The AP just reported that Deputy Defense Secretary Paul Wolfowitz will be nominated by President Bush to take over as head of the World Bank. I've heard the rumors for a while, but actual confirmation remains a bit stunning. It's not that I think Wolfie is a lair (as do many of my friends). In fact, I consider him to be a true believer. The problem is that I consider many of his more well-known beliefs to be absurd, and his foresight to be akin to that of Grady Little. Very disappointing nomination. Hey World Bank readers, what's your take?

**Finally, a few of you have asked about last Friday's California court decision that there are reporters should be found liable for publishing a company's trade secrets. The case specifically dealt with Apple Computer, but could have far-reaching consequences. After all, any time this space prints a previously-undisclosed company valuation or VC firm partner defection, couldn't it arguably could be considered trade secret (seems that California's shield rule only applies to political and sports reporters)? In fact, isn't uncovering trade secrets a large part of what business journalists are paid to do? Troubling ruling, but here's hoping for a successful appeal.