In the spring of 1999 two star angel investors of Silicon Valley Kleiner Perkins led by John Doerr and Sequoia Capital of Michael Moritz decided to invest in Google. It was exactly what Sergey Brin and Larry Page needed because they were running low on cash. But the problem was that both venture capitalists refused to invest jointly to the company, so Google risked losing both of them. Each firm was too big to cede control to the other, each wanted to lay claim to Google as “its” deal, and neither agreed to make a deal as a minority partner. Brin and Page faced a strong dilemma. They needed cash promptly but above of all they wanted to remain control over their company.
The Google’s leaders reflected in the following way. They needed money and had two companies offering it. But if they could persuade both firms to invest, they could get cash without losing control over Google. And that was the way they decided to pursue even if it was going to lead them nowhere. They asked Ron Conway, one of Google’s early investors, who had many contacts with venture capital firms including ones of Doerr and Moritz, if he could gather a group of angel investors instead of a single major one. An array of passive investors meant for Brin and Page remaining in charge, so they told Conway that it is their main requirement they were not ready to change anyhow, adding that time was of essence since they ran out of money. Doerr and Moritz were the first Ron Conway contacted and told them that unless they could find a way to work together, the Google Guys would go away and they were not bluffing.
Kleiner Perkins and Sequoia put aside their own ambitions and within several days had the deal worked out. They would each invest $12.5 million in Google, splitting the $25 million venture portion of the deal in half, and accede to the demand that Larry and Sergey remain in charge with majority control.
David A. Wise, The Google’s Story, 2005
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