You’re a VC: Would You Have Done Google’s Series A?

I have heard this many times from people in the venture industry, but it is still remarkable how many venture folks will concede that they would not likely have invested in Google’s series A investment round. Sure, KPCB and Sequoia put in $25-million, but would you have done it?

Atul Madahar, Principal, TL Ventures:
“No, because it would have been too difficult for us to really understand the superiority of their engine without working code.  Also Yahoo was the dominant search engine at the time followed by half a dozen other engines, meta-engines, etc.”

Darren Wallis, Venture Partner, Cross Atlantic Capital Partners:
“I would have passed on it because I would have thought the business model would not be sustainable, given the highly-fragmented space at that time. It just shows you that sometimes you have to look past the business model and focus on the superior technology.  Then, the technology drove the business model.”