Will Larry and Sergey Grow Up?

I wouldn’t have have thought there was anything new to say about Google, its financing, and its IPO, but there is (as written by the estimable John Heileman):

About a month into the [first-round financing stand-off between Sequoia and Kleiner Perkins], Larry and Sergey called [Ron] Conway and said, “Get a list together of your angel friends–we might just do the whole deal with angel money. KP and Sequoia don’t get it…. We’re gonna give them another couple of days, and then it’s over.”

Conway and [Ram] Shriram delivered the message. The next Saturday morning, Conway was sitting in a Starbucks parking lot when he got a call from Shriram. “The fight is over,” Shriram said. “They’re both going to invest, and it’s going to be fifty-fifty.”

On June 7, 1999, Google announced the financing: a $25 million infusion, led by Kleiner Perkins and Sequoia. The VCs each now owned roughly 10 percent of Google, and Google now had all the money it would need to pursue its ambitions. But Larry and Sergey had acquired something more valuable than money, and potentially more problematic: a sense that, unlike so many young founders before them, they could defy the grown-ups’ wishes and not be punished for it.