Categories: Tech & Society

The Future of CrunchFund

It was 20 months ago that TechCrunch founder Michael Arrington launched CrunchFund, a venture capital firm that had support from AOL, the company that had purchased TechCrunch one year earlier. CrunchFund started off with three partners out of which MG Siegler recently announced his move to Google Ventures.

With nearly 100 portfolio companies and now left with only two partners, what is the future of Michael Arrington’s venture capital effort, CrunchFund?

According to Dan Primack of Fortune, CrunchFund is performing quite well. He says the CrunchFund has a 20%-30% internal rate of return, which is about in line with what a venture capital fund is expected to deliver.

To date, CrunchFund has invested just over half its capital into more than 80 companies. Ten of them already have experienced liquidity events — including “acqui-hires” — while only one has been written off. The current internal rate of return (IRR) is somewhere between 20% and 30%.

That data signifies two things:  (1) CrunchFund doesn’t actually need to raise a second fund yet, with plenty of dry powder in the till; and (2) CrunchFund should be able to raise a second fund when it does go out, based on performance.

There is one interesting part about the future of CrunchFund – a replacement for MG Siegler. 

The talk of the town is that MG was the man behind sourcing new deals and was the most active out of the three. Now that he is gone, it will be interesting to see how the fund proceeds and who can take his place. Also, Siegler’s departure is said to be fairly abrupt because although he was in talks with Google Ventures since a few months ago, he informed CrunchFund only last week.

A CrunchFund investor told Fortune, “A lot of venture capital is about who you know and what people think about you, but only because we all believe that has an impact on performance. If CrunchFund ultimately generates good returns, he’ll get the money [for a second fund]. But it’s still too early to send him another check, or to tell him to kiss off — even though there are probably people who want to do both.”

Prateek Panda

Prateek is the Founder of TheTechPanda. He's passionate about technology startups and entrepreneurship and enjoys speaking to new founders every day. Prateek has also been consistently regarded as one of the top marketing experts in the region.

Recent Posts

The AI-driven CFO: How Artificial Intelligence is redefining financial leadership in the tech era

The Chief Financial Officer (CFO) is no longer the only one responsible for budgets and…

1 day ago

From Roblox to Python: How game development educates kids on AI principles

AI is no longer in the distant future, discussed only in university classrooms or interactive…

3 days ago

M&A: The art of the deal

The Tech Panda takes a look at recent mergers and acquisitions within various tech ecosystems…

5 days ago

As we seek to create robots that’re more ‘human’ who’s helping? AI

As robotics progresses towards creating humanoid robot helpers, our tendency is to create them in…

1 week ago

Japan’s Web3 Strategy: A Safe Haven for Chinese Investors Fleeing Capital Controls?

On June 7, 2025, Japan enacted a series of regulations aimed at enabling stronger consumer protections…

1 week ago

Agentic AI Is Reshaping Data Infrastructure—Are Data Warehouses Obsolete?

Introduction: The Signal Behind Snowflake’s CEO Change In the spring of 2024, Snowflake, a star…

1 week ago