How Google founder playing with venture capital?

cloud network hunting note: while crawling and sequoia capital, larry and sergey feet trample two ship to another investment bosses kleiner perkins caufield & byers company issued the invitation. Kleiner perkins caufield & byers after meeting with their boss John doerr, ask larry, “Google’s business have how old?” “10 billion dollars.” Larry’s answer. “All the signs are that, Google is the two guys made a fantastic business: they got the funds required to build our favorite search engine, but also have mastered in the control of the company autonomy.”

“we don’t so much money!”

in 1999, Google founders larry and sergey to vc shows that his position, the sequoia partner mike? Moritz was very surprised, Google boy decided to upset him.

at the time, larry and sergey ready to Google funds, therefore they are prepared to sell one 5 of the company, the financing amount is $25 million, that is to say what they think Google is worth 125 million dollars.

when someone recommended to moritz when the two young men, he dismissed at first, because he has to rush to the public. Com, he said: “sooner or later someone will hit a wall.”

however, moritz promised to see larry and sergey on one side. Looks like two young students in Google’s search engine, they will concentrate to provide customers with the best service, only do user requirements within the scope of the matter, only do let customer satisfaction.

moritz is determined, decided to accept their offer, let sequoia capital investment of $25 million, for one 5 of the Google shares.

larry and sergey, however, made a strange decision, make the moritz produced feel like a swallow the bait.

“they have a very clear principles in mind: go all to maintain their control over the company. Choose cooperation with two investors at the same time, is an ideal strategy for them, and can completely avoid company by external force control.” “Google is how to control the world” the author Daniel Mr Biya once said and sequoia capital game when larry and sergey.

just looks like a middle school student of larry and sergey initially reserved sequoia capital soul hook up at the same time, has prepared the bloodthirsty capital of prevention.

while crawling and sequoia capital, larry and sergey feet trample two ship to another investment bosses kleiner perkins caufield & byers company issued the invitation. Kleiner perkins caufield & byers after meeting with their boss John doerr, ask larry, “Google’s business have how old?”

“$10 billion.” Larry’s answer.

“it is as you say, the whole market gross?” Toure then asked.

“No, operating income,”

. Larry says, take out a laptop, show someone the superiority of Google’s search technology compared with competitors.

“I almost fell down from the chair! That is one of the most important in my life have I talk.” Doerr says, “if you watch the company’s founder and technical strength of their own, so any cost is worth it.”

toure decided to Google investment, and the redwood moritz is made the same decision. Two investment company different style, a radical, a conservative, but they all want to monopolize the 20% stake in the Google, and repel each other.

larry and sergey so from want people came out of the situation, and began to confidently look at two venture capitalists to suck up to their competition.

moritz girding, go all out to win the project, toure is tit for tat. Google employees early in GQ magazine, said “moritz and toure hope to reach a deal with Google alone, and finally evolved into a seesaw battle, but they didn’t fully realize the founder of our company on this issue, so stick to your bottom line.” Larry and sergey let the two companies share the share, joint investment of Google.

moritz on larry and sergey decision almost mad, he want to separate with the 20% stake, it is not only can maximize investment interests, and it is charged with Google for sequoia capital the road to the future of the stage.

over the years, moritz, sequoia investment was Google has multiple purposes, in addition to its future development potential that can power the reason, there is a he won’t tell larry and sergey plan at that time, this is the company to make use of Google flank protection, because sequoia capital was also on yahoo to invest a lot of, and yahoo was clear business model. Sequoia plan put unprofitable for yahoo search business outsourcing, let Google to undertake the business. Moritz said: “we view of Google is that it can promote the business of the other website, especially for yahoo.” That is to say, in the overall sequoia capital investment plan, Google was originally a piece, of course is one of the more important pieces.

larry and sergey was impossible to know sequoia capital “good intention”, the influence of capital but they guard against, apparently to help them to bypass the thereafter may speak to many dangerous shoals reefs.

standoff for a month. Finally, Google boy through intermediaries to moritz and drew an ultimatum: “we give them two or three days, if they don’t agree our conditions, then everything will end.”

because at that time, come your way and have an investment company, said Google company value $150 million, it is higher than the original $1.25 valuation. The company is willing to negotiations with Google at this price.

larry and sergey in private discussions, whether to put moritz and drew aside, but after some consideration, they finally make a decision, as long as moritz and toure in the agreed-upon period in advance and accept the terms of their share the stakes in this offer, and they at the original price, accept moritz and dole’s investment.

but larry and sergey was “cunning” use of the matter, they revealed to have new investors to participate in the news moritz and toure.

moritz worry about don’t cooperation will bring more opportunities to kleiner perkins caufield & byers and other rivals, so repressed their frustration, and promised to larry and sergey conditions. Kleiner perkins caufield & byers toure is such a psychological, raised a white flag helplessly.

on June 7, 1999, a shock was officially released silicon valley and Wall Street financing advisory: Google from sequoia and kleiner perkins caufield & byers received $25 million in total investment, the two companies each occupies about 10% of Google’s shares.

sergei said: “I thought we were talking about a good price. Venture capitalists think our price is too high, we think price is too low. Venture capitalists will it as a business to do, at least as a race.”

from the point of view of investment income, moritz and toure was successful, even a great success. Google later listed, their shares worth about 3 billion dollars.

the more successful is larry and sergey, they got the two incompatible in silicon valley venture capital support, the key is they are still firmly in control of the company’s equity, this ensures that Google for a long time in the future days, basically not interference by capital, can according to the ideas of their own development.

“all the signs are that, Google is the two guys made a fantastic business: they got the funds required to build our favorite search engine, but also have mastered in the control of the company autonomy.” The writer David wise such comments.

source: netease

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