Omidyar Network invests in Feedster

Feedster announced funding from Pierre Omidyar’s Omidyar Network,

Scott Rafer told me on Monday that the Omidyar Network had a good understanding of his approach to life and business from reading his weblog. A good business case for blogging about more than just your startup. Omidyar Network is interested in enabling the public. Feedster seeks validation as it continues to pursue venture capital funding, but the Omidyar Network is known for investing in social ideas and non-profits (Creative Commons, voting intiatives). Feedster is currently the only live search player without venture capital funding.

I know little about the world of venture capitalists, but it is always interesting how dollar amounts or board of director placements are never announced. If someone gives you five dollars you can issue a press release and feel your business model has been validated. If you have a good enough product the VCs call you and you work out a relationship and partnerships. Pitching to VCs has been described as bend over and grease up but I think it would be interesting to gather ideas from intelligent business people even if it never resulted in immediate millions.