| Will the Google IPO have any impact on the | | | | valuations? Does this mean there is new "hope" for |
| Venture Capital market? FundingPost ( surveyed | | | | exits for venture-backed companies? |
| 32 Venture Capitalists and Angel Investors for their | | | | Joe Rubin, Director, FundingPost: |
| opinions. FundingPost is happy to share these | | | | The majority of the VCs told us that it is |
| responses from leading venture investors as it should | | | | business as usual’ and there will not be |
| help guide CEOs of emerging companies who plan on | | | | much of an impact. At FundingPost, we believe that |
| raising capital today: | | | | the impact will be felt at the CEO level — |
| 1) Google raised $25 million from Sequoia Capital and | | | | where a founder of a startup sees the potential for |
| Kleiner Perkins Caufield & Byers. Would you have | | | | a home run in their exit. |
| invested in Google’s Series A round if they | | | | Jack Carsten, Managing Director, Horizon Ventures: |
| had presented to you? | | | | The firms that invested in this company are going |
| Joe Rubin, Director, FundingPost: | | | | to be rescued’ from poor returns, as it is |
| We received mixed answers — the Angel | | | | one of the only successes in the sector. That might |
| Investors basically said yes’ as they liked | | | | influence LPs to reinvest in Internet centric funds...but |
| the technology." | | | | I doubt it. Public and private valuations tend to move |
| Atul Madahar, Principal, TL Ventures: | | | | together sector by sector, even though this often |
| No, because it would have been too difficult for | | | | does not make logical sense. So if the Google IPO |
| us to really understand the superiority of their engine | | | | valuation holds up over time, it can become a |
| without working code. Also Yahoo was the dominant | | | | benchmark for exit valuations. On the other hand, if it |
| search engine at the time followed by half a dozen | | | | tanks, it will only reflect badly on the sector - the |
| other engines, meta-engines, etc. | | | | greedy VCs cheated the public again.... |
| Darren Wallis, Venture Partner, Cross Atlantic Capital | | | | Chris Roser, General Partner, Roser Ventures: |
| Partners: | | | | The IPO market always has an impact on |
| I would have passed on it because I would have | | | | venture investing in regards to higher valuations the |
| thought the business model would not be sustainable, | | | | more open the IPO window. The question is how |
| given the highly-fragmented space at that time. It | | | | much Google will influence the IPO market and to the |
| just shows you that sometimes you have to look | | | | extent it is successful, I believe, it will contribute to a |
| past the business model and focus on the superior | | | | good IPO market. |
| technology. Then, the technology drove the business | | | | 3) Do you feel that this will heat up the M&A space - |
| model. | | | | with Google now having "currency" for acquisitions |
| Eric Janszen, Managing Director, Osborn Capital | | | | and Yahoo and Microsoft racing to compete? |
| (Early-stage angel fund) | | | | Joe Rubin, Director, FundingPost: |
| We have certainly invested in bright students | | | | The majority of the investors felt that only a |
| with good ideas out of universities, but not recently. | | | | few companies would benefit directly and that the |
| Would we have invested in these particular bright | | | | M&A space has improved this year independently. |
| students at that time? I was fortunate enough to | | | | John Shulman, Managing Director, Allied Capital: |
| meet Google's founders last year at Stanford and | | | | There is no doubt that M&A will heat up. It is |
| was impressed by the simplicity and clarity of their | | | | happening anyway and this will only accelerate the |
| vision, which had not changed from day one, and no | | | | velocity of activity. |
| doubt that would have appealed to us then. Most | | | | Jesse Lawrence, Associate, Updata Partners: |
| company ideas you see today are features of Cisco | | | | The IPO may heat up the M&A activity within |
| or Microsoft products, or business applications. | | | | the search and related sectors, but should not have a |
| 2) Does the Google IPO have any impact on venture | | | | significant effect on other software sectors. |
| investing for the next 12 months? Will it increase | | | | |