The Capital generation to make Google.Inc (Incorporated)
The first funding for Google as a
company was secured in August
1998 in the form of a US$100,000
contribution from Andy
Bechtolsheim, co-founder of Sun
Microsystems, given to a corporation
which did not yet exist.
On June 7, 1999, a round of equity
funding totalling $25 million was
announced , the major investors being rival venture capital
firms Kleiner Perkins Caufield & Byers and Sequoia Capital .
While Google still needed more funding for their further
expansion, Brin and Page were hesitant to take the company
public, despite their financial issues. They were not ready to
give up control over Google. After borrowing the $25 million
venture capital money from Kleiner Perkins Caufield & Byers
and Sequoia Capital, Sequoia forced Brin and Page to hire a
CEO or else they would take back that borrowed $12.5 million.
Finally, Brin and Page gave in and hired Eric Schmidt as Google’s first CEO in March 2001 and the company went public three years later.
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