The Venture Capital Squeeze

Paul Graham has written another excellent essay regarding the state of VC and startups. A really good read...I have heard of many more Google aquisitions at the very early stages of development and agree. I also believe that one motivation for the Google aquisitions is to continue to hire quality, motivated engineers that will thrive in their flat organizational sturcture. Providing your employees 20% of their time to work on side projects is establishing a trust that their time will be spent working on fruitful initiatives that will benefit the long term. Hiring small groups that already demonstrate their motivation is a shortcut to ensuring that.