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To: GVTucker who wrote (67258)	3/8/2005 7:56:54 PM
From: Lizzie Tudor	Read Replies (3) \| Respond to of 77400

the issue is the potential for return on their investment which can be an IPO or sale. Again, you'd hope that the purchasers would "get it" and ignore non cash "expenses". But the fact is, that if google had to expense options out of the gate they would have been unprofitable. Would it have hurt them? yes.

To: GVTucker who wrote (67258)	3/9/2005 1:03:16 AM
From: Amy J	Read Replies (3) \| Respond to of 77400

In Silicon Valley, startups are anyone pre or post IPO, basically less than 100 employees. RE: "Expensing options is irrelevant for a startup. " It's an East Coast thing to assume startups mean pre-IPO. Am pretty certain Lizzie is working with Series B, C's and post IPO startups. Infrastructure build out phases certainly don't happen in Series A, unless one wants to wash away equity. RE: "99% of the startups lose money, and most all of them lose money for three years. Nobody in the venture business expects profits until a Series B round, at the least." Hm... can think of more than a dozen women that I know that have raised venture capital but only after their startups were profitable - Series A, B, C. Funny, you see it differently than what we see it here. It would be interesting to chart a person's business profitability at the various stages by gender. Regards, Amy J