Add to del.icio.us     Digg this

Jun. 21, 2007

Various news reports today suggest that there are two more engineers at Google that have left the Googleplex. Apparently this time it is to join the venture capital firm Benchmark Capital.

Jim Norris and Bret Taylor, two of the best engineers behind Google Maps and a few other Google products, have joined the firm as “Entrepreneurs in Residence.”

Overall, this offers them paid positions to hang out at Benchmark’s offices and think through starting a business. They have a specific idea in mind, but are secretive about it, telling VentureBeat only that it’s a “consumer Internet” company.

Benchmark has been loading up on EIRs lately. Last week, the hiring of Google's Mike Cassidy was reported for a similar position — in part because it is more aggressively investing in earlier companies. It now has four EIRs, up from two on average over the years.

In 2006, Fenton actually looked up Bret Taylor. The two stayed in touch, and three months ago, Taylor indicated he was ready to start a new company. Jim Norris was always in the picture also, since he and Taylor are virtually inseparable.

Both 26, they studied together at Stanford, sharing most of the same computer science courses, and have stayed together since. There were only six Google employees responsible for creating Google Maps.

Taylor was the overall project leader, while Norris was responsible for the server side of the product. Google Maps became hugely popular, one of the first to be syndicated widely across the Internet in the form of “mashups,” and is now stitched inside of tens of thousands of Web sites.

The two joined Google four years ago. While early enough to benefit them considerably in the IPO, it wasn’t enough to give them the many millions that earlier employees enjoyed. They’re likely to want help with venture backing for their company, they said.

The EIR arrangement lets the company build goodwill with entrepreneurs. In return, Benchmark expects entrepreneurs will look to Benchmark as their first source of funding.

But that requirement is not part of the contract, stresses Peter Fenton, a Benchmark partner.

But they still said the move to Benchmark is really about the experience the firm offers. “It’s not about the money,” said Norris. While the pair are confident in their ability to build their idea, they want help learning what it takes to run a business, he said.

Like Cassidy, the two will be able to sit in on pitches made by other entrepreneurs to Benchmark.

Is there a risk they will steal ideas, as one commenter asked in our Cassidy post? Benchmark’s Fenton said their role will be disclosed to entrepreneurs, who will have the option of requesting that they not partake of the pitch.

Fenton said most entrepreneurs welcome the opportunity to have EIRs in on meetings. It adds to the discussion and helps create more ideas.

Benchmark’s Fenton said the plentiful capital available in Silicon Valley for mid-stage financings makes it more lucrative for Benchmark to invest in earlier stage companies. Valuations are low when companies are young, so Benchmark pays less to own a stake in those risky seed-stage companies.

When those companies mature, they have an easy time raising money from other venture firms.

Aside from Google Maps, the pair also worked on the Google Maps API, and several products that emerged from the group, including Local and Satellite Maps.

In 2006 they each received the Google Founders’ Award, the highest honor given a Google employee, for their work on maps.

Add to del.icio.us     Digg this

    This article was featured on Business 5.0.

Source: Venture Beat