Another team of Ex-Googlers just got funded to pursue their startup dreams. What, again? Seems almost daily that a team who did time at Google is able to raise a round for a new venture. Angels and VCs will tell you there are many good reasons for this including:
1) Google hires smart and focused people to begin with,
2) the team likely already has proven expertise in the niche they are pursuing, since Google does almost everything,
3) they will already have a great network, especially with other people from Google,
4) the internal Google network probably already informally vetted the idea,
5) they already know how to build high-performing teams that iterate quickly, because Google trains you to do this, and
6) future fundraising will be easier because this team comes from Google.
Now we’ve learned that an informal group of leading angels and venture capital firms is going to take the next logical step and simply fund any team from Google for whatever. The team doesn’t need to have a product, market traction, revenue, or even a clear idea about what the company will do, they just have to be from Google.
An anonymous VC we talked to said “Yeah, we aren’t going to make any formal announcements, and certainly we want to keep this quiet as none of us want to admit to the simplicity of the strategy. But the simple truth is that the data backs up this approach. The new company has a greater chance of success simply based on this one factor – coming from Google. Past success, team skills, market timing, all these play a small role of course, but coming from Google still is the single biggest factor that reduces risk. The models show that using just this one factor alone, and eliminating any others leads to the best results. Risk is lower because if the company needs more cash than expected, or has to iterate on the product and even go in an entirely new direction, the funding community will come together and give them another round, because these guys are from Google. Especially some of these angel groups, they’ll just throw cash at any team from Google.”
Makes sense, so expect to see more Ex-Googlers funded for whatever.