Googling for Gold

27 Nov 2005

Interesting article over on BusinessWeek that talks about the google phenomenon, it’s implicit impact in the overall m&a marketplace, and the terse relationship it shares with traditional bankers and VCs.

After their workouts, Googlers can snack in a stocked pantry or enjoy an on-site massage. Young Googlers’ preoccupation with these perks tend to drive mature VCs to distraction. “If I hear one more [punk] complain about his omelet, or tell me he’s bored with the smoothie selection, I’m gonna, I don’t know,” splutters one.

Yet many [VCs] feel that Google accords them roughly the same respect as it does vendors bidding on the groundskeeping contract.

and the best quote of all….

The suits inside Google don’t fare much better than the outside pros. Several current and former insiders say there’s a caste system, in which business types are second-class citizens to Google’s valued code jockeys. They argue that it could prove to be a big challenge in the future as Google seeks to maintain its growth. They deem the corporate development team as underpowered in the company, with engineers and product managers tending to carry more clout than salesmen and dealmakers.

Poor VC’s, they don’t like to see Brin & Page deal directly with the founders of potential acquisitions. To make matters worse, these companies are being acquired when they’re still in a core technology phase and not actively selling or seeking outside investments.

Om Malik has also commented on this topic in Google vs. the Venture Capitalists