>> Tip for acquirers: when a startup turns you down, consider raising your offer, because there's a good chance the outrageous price they want will later seem a bargain.

> Simply "offering more" does not address the reason why there aren't more Googles.

You must put that advice in context...

The context here is that PG's job is to be the first investor in a company.

Advising potential acquirers to raise the offer can only grow his personal return.

It makes perfect sense for PG to encourage potential acquirers to throw more money at startups.