Wednesday, November 09, 2005

Venture Capitalist... you've been Googed!

Check out this hilarious blog the_vcsqueeze. Actually it's fairly dry reading until you get to the Google part...

"'Bring us your startups early," said Google's speaker at the Startup School. They're quite explicit about it: they like to acquire startups at just the point where they would do a Series A round.'"

It's fascinating when even VCs potentially have to worry about the impact Google has on their industry. The brunt of the article speaks to how Google's acquisitions of Series A round start-ups in effect gets around the 'premium' that would have to be paid for a successful VC-funded company in later rounds. Honestly, I don't buy the argument at all since corporate entities (with few notable exceptions) don't easily stomach the risk involved in investing in unproven technology, and worse, dampen the innovation they purchase due to integration to 'process' (which is at the foundation of larger companies). Better to wait for the winner in a market and then take on integration risk on the hopes the technology has reached some threshold of market acceptance. Still, its a funny thought regardless...

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