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Venture capitalist Lee Lorenzen has profited from the hype about Facebook applications. And he'd like to share. In a message he sent to reporters — the recipients were apparently chosen because they wrote about two of his startups, Adonomics and TheUADA — he's offering to let them invest in a financing round for the companies. I'll spare you the lectures about journalistic ethics: Michael Arrington already writes about startups he's invested in at TechCrunch. Why can't everybody play this game? Ah, well, there's the hitch in Lorenzen's plan: He likely has no clue how little money reporters make, compared to the programmers and executives of the Valley. While buying into a startup on the cheap in a seed round might sound like a promising investment, most journalists would rather get a guaranteed 18 percent return by paying off their credit cards. Why not just send reporters a check for every positive story they write? That seems easier. Here's Lorenzen's letter:

Subject: An opportunity to invest in the Seed Round of Adonomics and TheUADA

To all:

I'm a big believer in that old story about those who help plant the wheat should be able to eat the bread. From an VC's perspective, planting the wheat is providing the seed funding to interesting start-ups and then nurturing them along the way.

The press has a problem in that if you invest in a start-up then it is difficult for you to write objectively about that start-up — or at the very least you need to disclose the potential conflict of interest whenever you do write. I'm not sure if I have a solution to this problem, but I want you all to know and be aware of an opportunity to invest in either Adonomics.com, TheUADA.com or both.

In one way or another, each of you have been helpful to Altura Ventures and/or to me personally as we have been investing in the Facebook eco-system. Although none of you have asked for it or expected it, I now want to return the favor.

Therefore, if any of you can invest personally (the minimum amount will be $2500) or have some kind of blind trust that evaluates these types of opportunities, please e-mail me at LeeL@altura.com and I will send you the attachments that go along with the e-mail below.

The Seed Round will go quickly (in fact my existing angels would likely take the whole thing if I let them), however I want these companies to avoid the problem that eBay had where by the time they were going public and wanted to reward their power sellers and others with pre-IPO stock, there was no way to do so — or at least no way that their investment bankers would allow them to do.

Lastly, please remember Lorenzen's First Rule for Start-up Investing:

Invest only what you can afford to lose and have us remain friends. :)

Thanks,
Lee Lorenzen
CEO, Altura Ventures — the First Facebook Only VC
cell: 831-595-7501
e-mail: LeeL@altura.com