He talks about how he met Six Apart's Mena Trott at a party thrown by Gawker Media's Nick Denton and how Mena talked Fred into blogging. Fred says blogging helps him catalog his thoughts. He gets 7 to 10 comments to every posts he writes--so he's getting that much feedback to every idea he puts out there.
In fact, three out of the six companies he has invested in—Indeed.com, Delicious, and FeedBurner-- came about through his activities in blogging. What's great, Fred says is the blog really helps focus the dealflow. People know what his VC firm is interested in investing in.
Little tidbit. He describes Web 2.0 as marketing word for the resurgence in investment in the Internet. And he talks about the phenomenon of me-too companies in some areas such as tagging or video sharing these days.