Yahoo!'s Talent Keeps Bailing

"Being a start-up guy, I couldn't handle the glacial pace of Yahoo! technology and product development," said another former Yahoo! vice president who left the company earlier this year, also for a start-up.

Start Your Engineers

"An interesting topic would be to look into the difference in engineering horsepower between Google and Yahoo! -- not just in terms of the number of soldiers, but also the quality of commanding officers. Google has innovation in its DNA, while Yahoo!'s DNA is rooted in media and advertising," the ex-VP said.

As Yahoo!'s prospects remain murky, the company is seeing an increasing amount of competition for talent from innovative start-ups, many of which are benefiting from the rise of a new generation of Internet technologies and eager venture capitalists willing to back them.

Venture capitalists invested a healthy $6.2 billion in the third quarter of 2006, making it the third straight quarter to see a strong funding environment, according to research from the National Venture Capital Association.

Seed and early-stage deals in the telecom, media and entertainment industries continued to post strong numbers, meaning there are a growing number of potential homes for Yahoo! alumni.

"Yahoo! is a mature company now, and they are trying to set new goals and new directions," says Robin Reed, a principal at Reed Shay & Co., an executive recruitment firm that focuses on technology start-ups.