Disrupt SF: Kevin Rose Defends Google Ventures Amid Y Combinator Drama
At TechCrunch Disrupt in San Francisco, Kevin Rose, a partner at Google Ventures (GV), took to the stage today to address the recent controversy surrounding GV’s valuation and investment practices. The drama began when an internal note from Paul Graham, co-founder of Y Combinator (YC), was leaked by Business Insider, accusing GV of low-balling on valuations.
The Fracas
Graham’s note sparked a heated debate in the startup community, with some questioning the fairness of GV’s investment practices. However, Rose aimed to diffuse the situation and provide clarity on GV’s approach. "Nobody’s trying to go out and halve valuations," he said unequivocally.
Rose emphasized that every company is unique, and GV considers a range of factors when evaluating investments. He noted that some YC companies are worth $8-12 million, while others may be worth $6 million or $4 million. "Not every YC company is a $10 million company," he pointed out.
A Case-by-Case Basis
Rose explained that GV’s investment decisions are made on a case-by-case basis, taking into account the specific needs and potential of each startup. He highlighted the diversity of investments made by GV as evidence of their willingness to take calculated risks and support innovative companies.
One recent example of GV’s commitment to supporting promising startups is Bufferbox, a YC alum that offers centralized parcel delivery boxes for people who miss parcel deliveries when they’re out. Rose named Bufferbox as one of his top-10 YC companies to watch in the latest batch.
Separation from Google
Rose also addressed concerns about GV being seen as an arm of Google itself. He emphasized that GV is an independent fund, with Google named as its main limited partner, but with a clear structure in place to protect startups from any potential conflicts of interest.
"We’re just trying to take some capital from Google and redeploy it into the next big thing — in technology in general," Rose explained. "Not necessarily specifically related to Google." He noted that this might sometimes mean investing in companies that compete with Google, but assured that GV has measures in place to protect startups from any potential conflicts.
A Wall of Protection
Rose confirmed that GV has a structure in place to ensure that startups are not influenced by Google’s interests. "There very much is a wall there," he said. However, he also acknowledged that GV has inroads to Google, which can be beneficial for startups looking to partner with the search giant.
"If that startup wants to get into the Google Play store, we know who to talk to about that," Rose pointed out. This highlights the delicate balance between GV’s independence and its connection to Google, as well as the potential benefits of having a foot in both worlds.
The End of Drama
Rose concluded by emphasizing that there is no drama or tension between GV and YC. "I have nothing bad to say about Y Combinator," he said. "They’re producing a lot of great companies." He attributed the controversy to an internal email being leaked, which was taken out of context.
Conclusion
In conclusion, Kevin Rose’s defense of Google Ventures at Disrupt SF today aimed to clarify and diffuse the recent drama surrounding GV’s valuation and investment practices. By emphasizing the diversity of investments made by GV and highlighting its independence from Google, Rose demonstrated that the fund is committed to supporting innovative startups, regardless of their potential competition with Google.
Rose’s efforts to address the controversy will likely help alleviate concerns in the startup community and provide clarity on GV’s approach to investing. However, the incident also raises questions about the role of internal communications and the importance of maintaining confidentiality in the industry.
Related Topics
- Disrupt
- disrupt 2012
- google ventures
- startups
- venture
