Y Combinator Founder Warns Against Googley Dollars
September 18, 2012
More anti-Google chatter. Are we missing something? We think Google is super, don’t you?
This time, it is the founder of Y Combinator stirring the pot. According to Business Insider, “Top Startup Advisor Paul Graham Just Warned Against Taking Google’s Money.” Apparently, Graham recently emailed that advice to his entrepreneurs, warning them away from “lowball offers” from Google Ventures. He maintains that the Google-backed venture capital firm demands unreasonably favorable terms for its largesse. See the article for specifics about his assertions.
Google Ventures’ managing partner Bill Maris vehemently denies the accusations. Reporter Owen Thomas writes:
“It’s simply not in Google Ventures’ self-interest to behave in the way Graham alleges it has, Maris said: ‘We work really hard on our relationships and our reputation … and most of us are entrepreneurs ourselves.'”
Thomas goes on to observe:
“Google Ventures also has extensive programs to help the entrepreneurs it backs with technology, analytics, design, and marketing—for which it might reasonably believe it should command good terms when investing. What is surprising is that whatever approach Google Ventures took to these Y Combinator startups caused enough friction to provoke Graham’s cautionary note.”
Yes, it was surprising. According to Maris, some of Graham’s clients have chosen to ignore his advice. Will doing so pay off?
Cynthia Murrell, September 18, 2012
Sponsored by ArnoldIT.com, developer of Augmentext
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