Alan Meckler Slams JP Morgan For “Chickening Out”
Alan Meckler, CEO of JupiterMedia has an interesting blog post about how JP Morgan Private Bank withdrew funding from Internet.Com Venture Funds back in 2002.
Meckler writes," The JPM team liked the Internet when it was hot, but did not like it very much when the Net was not. Of course that is why they play with money other than their own. They chickened out and ran to try to make themselves look good with their clients."
He points out that in 2000 that he predicted that large media companies would be spending most of their business development time purchasing vertical or specialized Web sites. For examples Meckler cites Dow Jones buying MarketWatch.com and The New York Times buying About.com
Meckler also points out that TechTracker.com was recently purchased by Cnet for what is believed to be around $15 million. He writes, "Internet.com Venture Funds was once one of the larger investors in TechTracker. When the JPM team pulled our funding we lost an opportunity to buy more of TechTracker at a discount to our original investment. Then JPM turned around and sold their interest in TechTracker (and several other Internet.com VC portfolio companies) to a buyer of ‘distressed’ assets for pennies on the dollar."
He goes on to write," There are more one-time Internet.com VC portfolio companies that are now very profitable and getting ready to be sold. The JPM private client group really knows how to run money!"