It was striking enough when Fortune magazine high-tech columnist Stewart Alsop joined New Enterprise Associates last June as a venture capitalist. Now he's stretched his job description even further by joining the board of directors of software maker Instinctive Technology, in which his VC firm announced a sizable investment Monday.
Instinctive said it would use the US$6.7 million in new funding from NEA, Matrix Partners, and North Bridge Venture Partners to finance development of its flagship product, a networking application called eRoom.
"When I first saw eRoom, my initial reaction was, 'I've got to have this product!'" Alsop said in a statement. "My second reaction was, 'I've got to invest in this company!' Now both of my wishes have come true."
While it's always nice when a business writer gets what he wants, isn't there a certain conflict of interest when an influential high-tech columnist also becomes an influential high-tech businessman?
Apparently not. "If Stewart were to write Fortune articles about companies in which NEA has investments, I would say that's unethical," said Charles Wolf, an analyst at CS First Boston. "He never does. Stewart always takes great pains to point out any companies in which NEA has an interest."
Bruce Smith of Merrill Lynch said it's incorrect to think of Alsop as a journalist first and a venture capitalist second. "He's a VC first," Smith observed. "I'm sure that's where the bulk of his income comes from. He writes a column just like a lot of VCs write columns."
Since it's usual for a venture-capital outfit to place one of its own on the board of a company in which it invests, few seem to think that a line has been crossed. Whatever else, Instinctive Technology certainly has a strong asset in its new board member.
"It's a rare opportunity to add someone of the caliber of Stewart Alsop to your board of directors," said the company's CEO, Jeffrey Beir. "As one of the great visionaries in our industry today, he will play a critical role in making eRoom an outstanding success."
