Inside the $2.4B Google-Windsurf Deal: How VCs and Founders Cashed In While Employees Faced Uncertainty
Techcrunch10 hours ago
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Inside the $2.4B Google-Windsurf Deal: How VCs and Founders Cashed In While Employees Faced Uncertainty

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Summary:

  • Google paid $2.4 billion to license Windsurf's tech and hire its CEO and top talent

  • Investors received $1.2 billion, with Greenoaks and Kleiner Perkins seeing significant returns

  • 200 employees not hired by Google got no payout, sparking controversy

  • Co-founders faced backlash for not sharing proceeds with the team

  • Remaining entity sold to Cognition, ensuring employee payouts

Weeks after Google's $2.4 billion deal with Windsurf, the tech community is still buzzing about the implications. The deal, which involved licensing Windsurf's technology and hiring its CEO and top talent, has sparked debates across Silicon Valley.

The Deal Breakdown

  • $1.2 billion went to investors, including Greenoaks, Kleiner Perkins, and General Catalyst.
  • The other $1.2 billion was allocated as compensation packages for approximately 40 employees hired by Google, with a significant portion going to co-founders Varun Mohan and Douglas Chen.

Investor Returns

  • Greenoaks returned about $500 million on a $65 million investment.
  • Kleiner Perkins saw a 3x return on their investment.

Employee Impact

  • 200 employees not hired by Google received no payout, despite expectations from a previously anticipated OpenAI acquisition.
  • Some hired employees had their stock grants revoked and vesting timelines restarted, delaying their financial benefits.

Controversy and Fallout

  • Vinod Khosla criticized the founders for not sharing proceeds with the team.
  • The remaining entity was sold to Cognition, ensuring financial gains for all remaining employees.

Windsurf Deal

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