TechCrunch’s Arrington Steps Down To Start CrunchFund

TechCrunch’s Michael Arrington may be raising a $20 million venture capital fund focused on early-stage technology companies, reported, citing unidentified sources. Arrington, who sold TechCrunch to AOL (NYSE: AOL) in September, is said to be teaming up with VantagePoint Venture Partners’ Patrick Gallagher.

Updated: AOL has issued a statement intended to head off any charges of conflict of interest related to Arrington’s new endeavors: “In light of Michael’s new responsibilities as a partner in CrunchFund, Arianna and Michael are announcing a search (both internal and external) for a Managing Editor to oversee day-to-day editorial operations and editorial standards at TechCrunch. Michael will remain founding editor and when he writes he will continue to transparently and openly disclose any conflicts of interest.”

The duo is reportedly looking to assemble an all-star team of Silicon Valley’s major VC firms and high profile tech executives. In particular, some of the firms being talked about include Kleiner Perkins, Greylock and Sequoia Capital. AOL also appears to be part of the arrangement.

Before he started TechCrunch six years ago, Arrington had been an angel investor. He ceased actively investing in tech companies about two years amid sundry accusations of conflicts of interest. But that moratorium didn’t last long, as he began investing in companies this past year. Arrington was also named a limited partner in funds managed by Benchmark Capital and SoftTechVC.