A friend of mine passed along this interesting piece of news: a new venture fund has been started exclusively to invest in RSS based businesses.

Even though RSS is a game-changing idea, having spent several years as a venture capitalist, I'm not sure an RSS fund is a slam dunk idea. The value proposition behind blogs, for example, are very media-related where as the benefit of RSS publishing systems tend to be software-related. In other words, RSS does indeed pull together a whole range of benefits, but most of the benefits have dramatically different value propositions. To put it another way, an RSS fund is somewhat like an SMTP fund - you could be investing in Lotus Notes, email marketing or Mozilla email clients.

Despite my questions about RSS as an investment thesis, I applaud the founding partners for putting their money behind something that is clearly going to drive significant change in business and the media. And, as a huge believer in all things RSS, I wish them tremendous success.