Of the many articles that describe how Google has changed Silicon Valley, its job landscape and financial expectations, this Business Week profile is among the best. Even-handed and well sourced, the article describes how Google has upended the traditional method by which startups are funded and eventually sold. Google has come to represent the ultimate VC company (witness Pyra and Keyhole, both of which were purchased directly from the founders without VC agency), and venture financiers aren't universally happy about it, to put the matter lightly. It's a good read.
1. Michael Eisenberg, Partner at Benchmark Capital:
"My personal opinion is that an entrepreneur ought to think twice before taking either Google or Yahoo's money at an early stage. Taking Google's money will likely dissuade Yahoo from becoming a partner and vice versa. Additionally, that is a great way to set yourself up for a small acquisition or a life of dependence on either Google or Yahoo.
Those great entrepreneur's who want to build the great big companies of the next century would do better to go it alone or look for a VC to partner with."
http://sixkidsandafulltimejob.blogspot.com/2005/11/yahoo-vc-google.html
Paul Fisher's notes on Web2.0 and venture capital
(very detailed)
Paul Fisher is Associate Director at First Capital, a boutique investment bank focussed on the technology and venture capital markets.
http://paulfisher.typepad.com/growth_technology_venture/2005/11/web20_and_ventu.html
Posted at 4:42AM on Dec 19th 2005 by Dimitar Vesselinov