Y Combinator Founder Paul Graham Issues New Warning to Start-ups
I don't know if this is true or isn't true, but Google Ventures' counter arguments are red herrings:<p><pre><code>  "I don't know what Paul's thinking," Maris said.
  "It's just not true. Our portfolio speaks for itself."
</code></pre>
and<p><pre><code>  "We've already closed investments on companies from this class,
  so they don't seem to feel that way," Maris said.
</code></pre>
Neither of those things mean that what PG is saying is false. Google Ventures is a desirable investor and entrepreneurs would be willing to trade lower caps for a Google stamp of approval on their round. The question is whether it's a matter of their policy to quote a cap at half of a company's existing one, and whether that is an ethical policy. Because they are skirting the question, it certainly makes them look guilty to me.