Google VC Fund: Conflicts of Interest?

by: Paul Kedrosky August 01, 2008 | about stocks: GOOG    
Paul Kedrosky

Paul Kedrosky

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Meant to weigh in on this sooner, but Google is going to launch a corporate VC fund. I've registered various times my general skittishness about such things, so I won't belabor that here, other than to say I can't imagine the world needs another Valley venture fund, corporate or otherwise.

The part that bugs me, however, is this: The guy running the fund was apparently a coworker of Sergey Brin's wife. You remember, the wife who runs the company in which Google already made an investment. Anyway, you would think the Google braintrust would try a little harder to look less conflicted in its investing decisions. Apparently, however, it's not enough that it invested in a company run by a founder's wife; Google had to go on and wrap a fund around one of her former colleagues.

Am I the only one who thinks Google doesn't do a great job skirting real/perceived conflicts of interest? I'm no nag on this subject, and have a dizzying number of conflicts myself, but I least try not to go out of my way to trip over them.

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This article has 2 comments:

  •  
    Aug 02 10:03 AM
    Shameful!

    Google has removed any semblance of what people in our 40s and 50s were taught was right and wrong in corporate America. Their rocket scientists, investment bankers, and inside counsel have developed an entire new set of rules, regulations, and business ethics ... and if someone doesn't play along, they risk being shut off from all of the money shifting to online advertising and other Googlized services.

    It is shameful. The true Google story is being told in some books I am aware of that are underway, however. Let's just hope it's not too late for the rest of us. I wonder if there are any other Google insiders who have cousins or would consider setting us up for life for a date?

    Hey, I once knew a guy named Sergey ... does that count?

    George
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  •  
    Aug 03 09:18 AM
    I dont see that what they do is relevant to th investor looking for profit.My webste did mention Google being abargain this winter.Te bottom line is that management must put up the EPS numbers or they won't
    Reply | Link to Comment
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