Mourning the one that got away
Anita Sharpe on Business
For the venture capitalists who turned down Google, it has clearly been wrenching to watch the stock return a 250-to-1 five-year payout to the investors who said 'yes.'
Indeed, one such VC would only talk to the New York Times if the reporter agreed not to mention the name of his firm. He said his firm chose to pass because the young Google founders appeared 'naively egalitarian in ways that seemed incompatible with their
'We were wrong,' he told the Times. 'It would have been a great investment.'
Similarly, when Howard Schultz was trying to convince the first investors to back Starbucks, he was turned down by more than 10 people for every one that signed on.
It would be interesting to know if the typical investor psychology is stung more by losing money on something that looks like a sure thing -- or missing out on a long shot that hits the jackpot.