Just came across this article.... Here's an excerpt and a link to the whole thing:

Here's the idea. Bildner wants to apply venture capital rules to book publishing. LVF will make small investments, and thus own portions of, promising novels, nonfiction works, and even book series. It's the spread-your-bets-and-hope-for-a-hit VC model. If one out of 10 investments pays off big, you get rich. In this case, the LVF gets rich, as any gains will be plowed back into the nonprofit for reinvestment in future projects. Here's an example of how a little money might help a fledgling book project: The modern book editor doesn't edit. He or she acquires a manuscript, cheerleads the author, and holds the writer's hand when, 49 times out of 50, the much-enthused-over project slides quietly down the drain. Well-heeled writers often hire their own editors to juice up their manuscripts. That's a luxury few can afford. So LVF might pay for an editor, or a marketing consultant, in return for a piece of the action. ''I believe it's harder for beginning writers to get the career support they need than it has been in the past," says Bildner. ''It's just harder to get an audience."

Interesting, innit?

The full story is here: http://www.boston.com/ae/books/articles/2005/08/11/his_latest_venture_is_buy_the_book/

It's a big gamble. I give the guy credit for the ballsy risk he's taking.

Venture capitalists, in general, put a lot of input/action into the way a business is run--can you see them controlling the ideas of the author, editor, agent, publisher? Book projects are so personal, if they take a hands-off approach to the content, and a hands-on approach to the marketing, I can see it being a unique marriage.

Silver,

I agree with you. (You know, you came immediately to mind when I spotted this article!)

Ani