Is Google killing off innovation in startups?

Alex Rainert and Dennis Crowley, founders of Dodgeball [the original Twitter] left Google in style – by posting their decision to quit on Flickr posing with their thumbs down [via Digital Inspiration]. Apparently, after getting bought over by Google, they weren’t happy with the way Google was treating Dodgeball and they feel that due to lack of prioritizing their product, other startups like Twitter managed to overtake them. Amit Agarwal at DI has listed some high-profile exits of people whose companies were bought over by Google and include developers of SketchUp, DMarc, Blogger, etc.

Getting bought over by Google may sound like a dream come true for startup entrepreneurs but doesn’t it really augur well for their product? Some products like Flickr and Del.icio.us have done well and continued to innovate even after getting bought over by Yahoo! but blogging’s flagship product, Blogger continued to stagnate for long after getting bought over by Blogger. Google prides itself on innovation but are they getting too big for their own good? In a hurry to acquire everything in sight, are they killing off innovation in these startups? The venture capitalists are undoubtedly pleased when they cash in their investments but the developers who start out with rose-tinted glasses to change the world through their product are often shortchanged.

There may be no easy solution to this dilemma as most entrepreneurs are definitely in the game to make the big bucks and even if it is only passion that drives their ambition, they need financial support to keep that dream alive. But after fulfilling their short-term ambitions of fame and adequate wealth (if there is such a thing), they hunger for more. Perhaps then comes the decision to let go of their pet project that was bought over by the big guys and rejuvenate the hunger for passion elsewhere. Just like the guys that made Dodgeball who now seek fresh excitement at area/code.

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  • http://www.suyogdeshpande.net/blog Suyog

    I personally think getting bought by Google is the worst thing possible for any new innovative web startup. They took forever to launch Writely, and when they did, all the hype of Writely was lost on the public. In the end it became a rather sedate google-word.

    Dodgeball was promising, and they ended up with similar fate. I am willing to bet measure map founders are soon going find themselves in similar boat. Its a pity that Google is the next microsoft.

    In contrast, most of Yahoo’s acquisitions are so well integrated into yahoo, and at the same time maintain their own flavor.

    S

  • http://www.ipatrix.com Patrix

    Suyog, I guess when it seems like it is too good to be true, it turns out it is, eh? So then I guess I’ll say no to Google :)

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