Changes

For the past couple of years, I've dreamed of being discovered and capitalized by a wealthy venture investor who might see the potential of the <a title="MyWikiBiz" href="http://www.mywikibiz.com/Main_Page" target="_blank">semantic web directory</a> that I now own with my sister.  Also for the past couple of years, I've <a title="WMF election 2009" href="http://meta.wikimedia.org/wiki/Board_elections/2009/Results/en" target="_blank">vied for a seat</a> on the Wikimedia Foundation board of trustees.  Last week, I discovered that if you're a venture capitalist, you might <a title="NBC Bay Area story" href="http://www.nbcbayarea.com/news/tech/Wikipedia-Gets-Millions-Changes-Rules-jw-54830732.html" target="_blank">buy yourself a seat</a> on the Wikimedia Foundation board.  I'm still stuck out here in the virtual cold, though, on both counts.

For the past couple of years, I've dreamed of being discovered and capitalized by a wealthy venture investor who might see the potential of the [http://www.mywikibiz.com/Main_Page semantic web directory] that I now own with my sister.  Also for the past couple of years, I've [http://meta.wikimedia.org/wiki/Board_elections/2009/Results/en vied for a seat] on the Wikimedia Foundation board of trustees.  Last week, I discovered that if you're a venture capitalist, you might [http://www.nbcbayarea.com/news/tech/Wikipedia-Gets-Millions-Changes-Rules-jw-54830732.html buy yourself a seat] on the Wikimedia Foundation board.  I'm still stuck out here in the virtual cold, though, on both counts.

<strong>Let's be fair</strong>

'''Let's be fair'''

Okay, let's be fair.  "Buying a seat" on a non-profit board may carry too strong a pejorative tone.  So, let's just stick to the facts.

Okay, let's be fair.  "Buying a seat" on a non-profit board may carry too strong a pejorative tone.  So, let's just stick to the facts.

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Have you ever heard of <strong>Pierre Omidyar</strong>?  If you have, you're a tech junkie, I'll bet.  Mr. Omidyar (pronounced AH-mid-yar) is the founder and chair of the eBay online auction site.  Thanks to that vision back in 1995, Omidyar's personal fortune exceeds that of all but perhaps two hundred other souls on this planet.  You know you're rich when you hang with <strong>Richard Branson</strong> for some drinks.  Wikipedia describes Omidyar as a philanthropist who with his wife founded Omidyar Network in 2004.  Wikipedia has also stated  that Omidyar is "<a title="Omidyar a douchebag?" href="http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=306203181&amp;oldid=304495270" target="_blank">the biggest douchebag</a>", one of the world's top "<a title="Omidyar a cheese lifter?" href="http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=prev&amp;oldid=289928161" target="_blank">cheese lifting</a>" men, and for a brief spell in November last year went by the name "<a title="Omidyar an Omidyoodle?" href="http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=prev&amp;oldid=251351350" target="_blank">Omidyoodle</a>".

Have you ever heard of '''Pierre Omidyar'''?  If you have, you're a tech junkie, I'll bet.  Mr. Omidyar (pronounced AH-mid-yar) is the founder and chair of the eBay online auction site.  Thanks to that vision back in 1995, Omidyar's personal fortune exceeds that of all but perhaps two hundred other souls on this planet.  You know you're rich when you hang with '''Richard Branson''' for some drinks.  Wikipedia describes Omidyar as a philanthropist who with his wife founded Omidyar Network in 2004.  Wikipedia has also stated  that Omidyar is "[http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=306203181&amp;oldid=304495270 the biggest douchebag]", one of the world's top "[http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=prev&amp;oldid=289928161 cheese lifting]" men, and for a brief spell in November last year went by the name "[http://en.wikipedia.org/w/index.php?title=Pierre_Omidyar&amp;diff=prev&amp;oldid=251351350 Omidyoodle]".

So much for the man; what about his non-profit Omidyar Network?  According to its <a title="About Omidyar Network" href="http://www.omidyar.com/about_us/evolution" target="_blank">own website</a>, the Omidyar Network is based on a

So much for the man; what about his non-profit Omidyar Network?  According to its [http://www.omidyar.com/about_us/evolution own website], the Omidyar Network is based on a

<blockquote>"conviction that every person has the power to make a difference. [Its] work enables people to discover that power, improve their own lives, and make lasting contributions to their communities."</blockquote>

<blockquote>"conviction that every person has the power to make a difference. [Its] work enables people to discover that power, improve their own lives, and make lasting contributions to their communities."</blockquote>

We can corroborate this on Wikipedia, where the article about Omidyar Network says that it is <em><span class="diffchange">"based on </span>the <span class="diffchange">belief that every person has </span>the </em><span class="diffchange"><em>potential to make a difference"</em>.  This <a title="IP 207.47.3.98 edits Wikipedia" href="http://en.wikipedia.org/w/index.php?title=Omidyar_Network&amp;diff=209046768&amp;oldid=204103755" target="_blank">text was added</a> back in April 2008, along with a substantial quantity of other congratulatory text, by an IP address at 207.47.3.98.  Fellow Internet watchdog <a title="Seth Finkelstein traces IP" href="http://en.wikipedia.org/w/index.php?title=Talk:Omidyar_Network&amp;diff=310854999&amp;oldid=310186153" target="_blank">Seth Finkelstein deduced</a> that this IP address traces to -- you guessed it -- Omidyar Network Services.</span>

We can corroborate this on Wikipedia, where the article about Omidyar Network says that it is ''<span class="diffchange">"based on </span>the <span class="diffchange">belief that every person has </span>the ''<span class="diffchange">''potential to make a difference"''.  This [http://en.wikipedia.org/w/index.php?title=Omidyar_Network&amp;diff=209046768&amp;oldid=204103755 text was added] back in April 2008, along with a substantial quantity of other congratulatory text, by an IP address at 207.47.3.98.  Fellow Internet watchdog [http://en.wikipedia.org/w/index.php?title=Talk:Omidyar_Network&amp;diff=310854999&amp;oldid=310186153 Seth Finkelstein deduced] that this IP address traces to -- you guessed it -- Omidyar Network Services.</span>

<span class="diffchange">There are <a title="Puff pieces strictly prohibited" href="http://en.wikipedia.org/wiki/Wikipedia:Conflict_of_interest#Self-promotion" target="_blank">guidelines against</a> publishing self-laudatory text about your own person or your employer on Wikipedia, but no repercussions <a title="Wikipedia logs on IP address" href="http://en.wikipedia.org/w/index.php?title=Special%3ALog&amp;type=&amp;user=&amp;page=User%3A207.47.3.98&amp;year=&amp;month=-1&amp;tagfilter=" target="_blank">ever befell</a> IP 207.47.3.98.

<span class="diffchange">There are [http://en.wikipedia.org/wiki/Wikipedia:Conflict_of_interest#Self-promotion guidelines against] publishing self-laudatory text about your own person or your employer on Wikipedia, but no repercussions [http://en.wikipedia.org/w/index.php?title=Special%3ALog&amp;type=&amp;user=&amp;page=User%3A207.47.3.98&amp;year=&amp;month=-1&amp;tagfilter= ever befell] IP 207.47.3.98.

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<strong>What will $2 million buy?</strong>

'''What will $2 million buy?'''

So, on August 25, 2009, there was a <a title="WMF announces Omidyar grant" href="http://wikimediafoundation.org/wiki/Press_releases/Omidyar_Network_Grant_August_2009" target="_blank">big announcement</a> that the Omidyar Network was committing up to $2 million in grant money to the Wikimedia Foundation.  Almost in the same breath, it was mentioned that an Omidyar Network partner, <strong>Matt Halprin</strong>, would be taking a seat on the WMF board of trustees.

So, on August 25, 2009, there was a [http://wikimediafoundation.org/wiki/Press_releases/Omidyar_Network_Grant_August_2009 big announcement] that the Omidyar Network was committing up to $2 million in grant money to the Wikimedia Foundation.  Almost in the same breath, it was mentioned that an Omidyar Network partner, '''Matt Halprin''', would be taking a seat on the WMF board of trustees.

Now, this may or may not be unusual in the non-profit world.  The money is technically coming from the 501(c)(3) component of the Omidyar Network, even though that organization also operates a limited liability corporation (LLC) that is free to (and does in fact) make traditional capital investments in for-profit enterprises.  It certainly is not an unusual practice for the Omidyar Network -- many of their large cash infusions are accompanied with the bonus of Mr. Halprin or another partner getting a seat at the boardroom table.  That's what happened when $4 million went to the <strong>Sunlight Foundation</strong>; <a title="Halprin and Sunlight" href="http://www.omidyar.com/about_us/news/2009/03/17/sunlight-foundation-announces-4-million-invesment-omidyar-network" target="_blank">Halprin was simultaneously seated</a>.  That's what happened when $4 million went to <strong>Goodmail Systems</strong>; <a title="Halprin and Goodmail" href="http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&amp;newsId=20090112005830&amp;newsLang=en" target="_blank">Halprin was simultaneously seated</a>.  That's pretty much what happened after <strong>DonorsChoose.org</strong> got Omidyar as a "National Expansion Funder" in 2007; <a title="Halprin and DonorsChoose" href="http://www.donorschoose.org/about/our_supporters.html " target="_blank">Halprin was seated in 2008</a>.

Now, this may or may not be unusual in the non-profit world.  The money is technically coming from the 501(c)(3) component of the Omidyar Network, even though that organization also operates a limited liability corporation (LLC) that is free to (and does in fact) make traditional capital investments in for-profit enterprises.  It certainly is not an unusual practice for the Omidyar Network -- many of their large cash infusions are accompanied with the bonus of Mr. Halprin or another partner getting a seat at the boardroom table.  That's what happened when $4 million went to the '''Sunlight Foundation'''; [http://www.omidyar.com/about_us/news/2009/03/17/sunlight-foundation-announces-4-million-invesment-omidyar-network Halprin was simultaneously seated].  That's what happened when $4 million went to '''Goodmail Systems'''; [http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&amp;newsId=20090112005830&amp;newsLang=en Halprin was simultaneously seated].  That's pretty much what happened after '''DonorsChoose.org''' got Omidyar as a "National Expansion Funder" in 2007; [http://www.donorschoose.org/about/our_supporters.html Halprin was seated in 2008].

And it's not just Halprin.  When <strong>Seesmic</strong> received $6 million from the Omidyar Network, Pierre Omidyar <a title="Omidyar and Seesmic" href="http://www.bizjournals.com/sanfrancisco/stories/2008/06/16/daily41.html" target="_blank">got himself a seat</a> on the board.  When <strong>Endeavor </strong>landed $10 million from the Omidyar empire, Omidyar's Matt Bannick <a title="Omidyar and Endeavor" href="http://www.allbusiness.com/company-activities-management/company-structures/11473195-1.html" target="_blank">took a seat</a> on the board.

And it's not just Halprin.  When '''Seesmic''' received $6 million from the Omidyar Network, Pierre Omidyar [http://www.bizjournals.com/sanfrancisco/stories/2008/06/16/daily41.html got himself a seat] on the board.  When '''Endeavor '''landed $10 million from the Omidyar empire, Omidyar's Matt Bannick [http://www.allbusiness.com/company-activities-management/company-structures/11473195-1.html took a seat] on the board.

<strong>What would I do?</strong>

'''What would I do?'''

If Omidyar approached me tomorrow and said they had $2 million (heck, let's just say $200,000) to help MyWikiBiz "make a difference" for every person, but that the investment was stipulated on Matt Halprin taking a seat next to my sister and me on the board of directors, would I take the money?  Not only would I take the money, I would hand-embroider the seat with Matt's initials in golden thread.

If Omidyar approached me tomorrow and said they had $2 million (heck, let's just say $200,000) to help MyWikiBiz "make a difference" for every person, but that the investment was stipulated on Matt Halprin taking a seat next to my sister and me on the board of directors, would I take the money?  Not only would I take the money, I would hand-embroider the seat with Matt's initials in golden thread.

So, how has the Wikimedia Foundation handled this obvious appearance of a seat having been bought?

So, how has the Wikimedia Foundation handled this obvious appearance of a seat having been bought?

<strong>The Germans are restless</strong>

'''The Germans are restless'''

Not the straightforward and direct way, which means apparently <a title="Germans upset with seat sale" href="http://en.wikipedia.org/w/index.php?title=User_talk:Jimbo_Wales&amp;oldid=311012973#WMF_Board" target="_blank">not altogether well</a>.  The German Wikipedia community is asking Wikipedia co-founder Jimmy Wales to clarify what just happened.  Wales admits that Foundation "communications could have been handled better", so he is quick to let Halprin do the talking, quoting Halprin's interview with the folks at the <em>Wikipedia Weekly</em> audio podcast.  Halprin <a title="Halprin defends the deal" href="http://en.wikipedia.org/w/index.php?title=Wikipedia:WikipediaWeekly/Wikimania_2009/Halprin&amp;oldid=310590067" target="_blank">assures any skeptics</a>:

Not the straightforward and direct way, which means apparently [http://en.wikipedia.org/w/index.php?title=User_talk:Jimbo_Wales&amp;oldid=311012973#WMF_Board not altogether well].  The German Wikipedia community is asking Wikipedia co-founder Jimmy Wales to clarify what just happened.  Wales admits that Foundation "communications could have been handled better", so he is quick to let Halprin do the talking, quoting Halprin's interview with the folks at the ''Wikipedia Weekly'' audio podcast.  Halprin [http://en.wikipedia.org/w/index.php?title=Wikipedia:WikipediaWeekly/Wikimania_2009/Halprin&amp;oldid=310590067 assures any skeptics]:

<blockquote>So there's no tie between the grant and Omidyar Network taking a board seat. That's absolutely not part of the conversation. It's something that Omidyar Network <strong>likes</strong> to do with our organizations, because we think we tend to be able to help and we have experience, but there's no <strong>tie</strong> with the grant that we've made to Wikimedia Foundation.</blockquote>

<blockquote>So there's no tie between the grant and Omidyar Network taking a board seat. That's absolutely not part of the conversation. It's something that Omidyar Network '''likes''' to do with our organizations, because we think we tend to be able to help and we have experience, but there's no '''tie''' with the grant that we've made to Wikimedia Foundation.</blockquote>

No tie, folks.  Move along.  Nothing to see here.

No tie, folks.  Move along.  Nothing to see here.

Here's what I find "interesting", at least. Omidyar Network has a portion of <a title="$4 million to Wikia, Inc." href="http://www.wikia.com/wiki/Wikia:Press:_Bessemer_Venture_Partners_Funds_Jimmy_Wales%27_Startup_Wikia" target="_blank">$4 million invested</a> since 2006 in the for-profit enterprise <strong>Wikia, Inc</strong>. Therefore, the fact is that someone Matt Halprin works alongside at Omidyar is the active partner responsible for managing a cash investment in Wikia. Jimmy Wales is the co-founder of for-profit Wikia, and he is also the emeritus chair of the Wikimedia Foundation, which this week received $2 million from Omidyar, and seated Matt Halprin on the board.

Here's what I find "interesting", at least. Omidyar Network has a portion of [http://www.wikia.com/wiki/Wikia:Press:_Bessemer_Venture_Partners_Funds_Jimmy_Wales%27_Startup_Wikia $4 million invested] since 2006 in the for-profit enterprise '''Wikia, Inc'''. Therefore, the fact is that someone Matt Halprin works alongside at Omidyar is the active partner responsible for managing a cash investment in Wikia. Jimmy Wales is the co-founder of for-profit Wikia, and he is also the emeritus chair of the Wikimedia Foundation, which this week received $2 million from Omidyar, and seated Matt Halprin on the board.

Is that a conflict of interest?  If I were Mr. Wales, I'd be a bit uncomfortable having one of my key private investors now also keeping an eye on my non-profit magnum opus.

Is that a conflict of interest?  If I were Mr. Wales, I'd be a bit uncomfortable having one of my key private investors now also keeping an eye on my non-profit magnum opus.

I guess it's no surprise, though. When the Ruth and Frank Stanton Fund donated over $800,000 to the Wikimedia Foundation, one of the first things the money went toward was <a title="Rent goes to Wikia" href="http://blog.wikimedia.org/2009/01/21/a-note-on-the-wikipedia-usability-initiative/" target="_blank">rent for sub-leased office space</a> at Wikia, Inc. (Even though Wikia hadn't presented the lowest competitive bid, and they were the only bidder invited to <a title="Erik Moeller explains the deal" href="http://lists.wikimedia.org/pipermail/foundation-l/2009-January/049360.html" target="_blank">re-submit their bid</a> to match the average of the other bids received.) If that's not a wired self-deal, I don't know what one is.

I guess it's no surprise, though. When the Ruth and Frank Stanton Fund donated over $800,000 to the Wikimedia Foundation, one of the first things the money went toward was [http://blog.wikimedia.org/2009/01/21/a-note-on-the-wikipedia-usability-initiative/ rent for sub-leased office space] at Wikia, Inc. (Even though Wikia hadn't presented the lowest competitive bid, and they were the only bidder invited to [http://lists.wikimedia.org/pipermail/foundation-l/2009-January/049360.html re-submit their bid] to match the average of the other bids received.) If that's not a wired self-deal, I don't know what one is.

<strong>Omidyar's perspective</strong>

'''Omidyar's perspective'''

I spoke with Sarah Steven, a manager in the Marketing and Communications department of Omidyar Network.  She emphasized that the two halves of the Network, the LLC and the 501(c)(3), are "one big office" and that they approach any investment first from the angle of "what is the social impact" of the target entity.  Then, only after they decide if a cause is worth pursuing, they worry about whether it will be a for-profit or a non-profit driven allocation, and that is what determines which entity will actually do the investing.

I spoke with Sarah Steven, a manager in the Marketing and Communications department of Omidyar Network.  She emphasized that the two halves of the Network, the LLC and the 501(c)(3), are "one big office" and that they approach any investment first from the angle of "what is the social impact" of the target entity.  Then, only after they decide if a cause is worth pursuing, they worry about whether it will be a for-profit or a non-profit driven allocation, and that is what determines which entity will actually do the investing.

No tie, folks.  Move along.  Nothing to see here.

No tie, folks.  Move along.  Nothing to see here.

<h4>Image credits:</h4>

<h4>Image credits:</h4>

     <li><span style="color: #000000;">Omidyar and Branson, <a title="Creative Commons 2.0" href="http://commons.wikimedia.org/wiki/File:Pierre_Omidyar_Richard_Branson.jpg" target="_blank"><span class="comment">Attribution 2.0 Generic</span></a>.</span></li>

     <li><span style="color: #000000;">Omidyar and Branson, [http://commons.wikimedia.org/wiki/File:Pierre_Omidyar_Richard_Branson.jpg <span class="comment">Attribution 2.0 Generic</span>].</span></li>

==Comments==

==Comments==