VCs betting on Microsoft

John Cook, who covers venture capital for the P-I, had an interesting story this morning on a $20 million investment and merger involving a company called EYT, which will resell Microsoft software for small and medium-sized businesses. Microsoft is competing heavily with companies including IBM in that segment of the market.

The story includes this passage quoting Greg Gottesman of Madrona Venture Group, one of the venture capital firms involved in the deal.

Madrona's Gottesman, who has been looking for opportunities that piggyback on the strength of Microsoft, said he feels comfortable investing in a company that is so closely tied to the success of the software giant's new product line.

"I would mortgage my house on the bet that Microsoft is going to be successful in this space," he said.