AdMob: What Internet Bubble?

Jim Goetz of Sequoia Capital — who joined AdMob’s board and led its Series A round in September 2006 — says the company was not overvalued and there is no Internet bubble. “It’s way too early to talk about a bubble.”

On the contrary, he claims AdMob was worth more than the $750 million Google was willing to pay for it. How much more? He won’t say, but after only three years, the company was at $100 million run rate in revenue and still had most of the cash it had raised. “That’s one reason why we pushed for stock,” Goetz said, “so there’s a meaningful upside in AdMob’s future.”

People have forgotten how long it took for an economy to develop for e-commerce, he said, and there’s still a long way to go. But the biggest reason Goetz said he invested in AdMob was because of the founder and CEO — Omar Hamoui, who was so passionate about AdMob that he dropped out of business school at Wharton and moved his wife and two children across the country to the Bay Area to start it.

Hamoui’s previous company, a mobile gaming company, had failed because of the lack of a mobile economy, Goetz said, and “he wanted to solve that problem…

“After four months at our offices, we threw him out because he had too many people. But at 28, the courage he had with two kids and a wife, to put it all at risk to start something, is rare and quintessential.”

Both Goetz and Rich Wong of Accel, who led AdMob’s Series B round, said they would have kept going, but Hamoui wanted to sell to Google, and it was his choice.