The news we got from Wall Street Journal confirms it that TechCrunch founder Michael Arrington is resigning as the editor in chief of the most popular tech blog. The reason for his resignation has to do with His intention to start a $20 million venture-capital fund backed up by AOL Inc (TechCrunch owner) and some other capital ventures in the future to come. The news came as a shock to me when I saw  TechCrunch editor resigns on my Alexa toolbar today.

Micheal, in his retirement period “will still continue to write for TechCrunch while he will also be running the fund company but that wouldn’t have anything to do with him being the editor of the powerful technology blog” said an AOL spokesman. But He will still be serving as the founding editor of the company but not to, writing of contents and editing at all times as the role of an editor requires.

“Arrington will partner with many well-known Silicon Valley venture capitalists – including Digg-founder Kevin Rose, Yuri Milner, Marc Andreessen, Ben Horowiz, and Accel Partners – to invest between $100,000 and $200,000 in fledgling internet firms.

AOL has invested $10m in CrunchFund, which will operate independently from AOL Ventures, with the other venture capitalists believed to have invested about $1m each. Patrick Gallagher, an investor at VantagePoint Venture Partners, will run CrunchFund alongside Arrington. [Guardian]

Formal New York co-editor, Erick Schonfeld, will become the interim editor while AOL will continue the search for a replacement for Micheal Arrington, said the spokesman.”