Threat of Loss of Control over Business after the First Big Outside Investment

April 9, 2007

Threat of Loss of Control over Business after the First Big Outside Investment 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...

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Kate Zakomurnaya

AGVIR.COM, Senior Editor