Yelp, a review site for local firms, is reportedly in major speaks with be purchased by Google, with The Times and TechCrunch referencing nameless sources announcing a deal might be worth much more than $500 million. Definitely Google would not desire this info leaked, but is somebody inside Yelp wanting a bidding war? As the NY Times notes : The deal between Google and Yelp could still unravel, one individual claimed, especially if another acquirer comes forward now that details have leaked.
Larry Dignan of ZDNet points out why it could be creepy if Google were to get Yelp. Om Malik of GigaOm breaks down why he thinks a deal would be positive for both firms. Five-year-old Yelp has raised at least $30 million in funding from Bessemer Venture Partners, which first invested in Yelp in 2005, Baseline Capital and DAG Ventures. In this economy, startups infrequently face resistance from potential shoppers who are frightened to deal with young corporations that won't be around months down the line.
That's what has happened to venture-backed Xtellus, a little networking gear company that threw its hands up and made a decision to sell itself to Oclaro for $33 million in stock. As Venture Wire reports, Manager Krishna Bala announced he spent too much time going over balance sheets and explaining to consumers the company is financially powerful. This appears like common-sense, but when pitching an investor: Know who you are pitching to, know who your competition is, and hear the VC's recommendation. That is according to Foundry Group's Jason Mendelson, who judging by the tone of his blog post is justifiably irritated - allegedly many groups meeting with him screwed these simple things up.
if you are running a startup and have tiny money, how does one hire top talent? Matt Mireles, the founder and Chairperson of one-year-old start up Speaker Text, asserts that by welcoming your startup's scrappiness you can lure the brave, courageous few who attempt to join you. He likens it to the Marines Corps: They take what others might see as guilt (below standard fringe benefits) and change it into an asset.
