Last week saw the announcement of the creation of a $100m VC fund exclusively aimed at RSS investments. RSS Investors, as the fund is known, â€œwill invest in companies working on different aspects of the technology, such as better security and new ways of managing the traffic on Internet content,â€ according to the SF Chronicle.
The fund was one of the hot topics of conversation at the AlwaysOn/Technorati Open Media 100 reception on Thursday. Those I spoke to seemed enthusiastic but bemused – are there really enough companies to fund to the tune of $100m using RSS? Even if you extend it to include podcasting, will this fund find enough companies to back fast enough to give a good return? It will be interesting to see if their timing is good. At the moment, they’ve got $20m from LPs and seem confident of getting the rest. If they’re right, it’s going to be an exciting few years in the content distribution and media space.