Google Ventures, the new venture capital arm of Google, has been launched with the expressed goal of finding "the next big thing" in the online world.
Whether that is a company in need of seed funding, or an established company looking to expand, Google is looking to help these companies become major players in their industry sector, whether that's locally or globally. This comes at a time when venture capital in the US is down more than 70% over the past 2 years.
The fund, however, is looking for investment opportunities on a global scale, and is welcome in areas like Europe where the recession has hit many countries harder.
The Wall Street Journal is reporting that the company is looking at committing close to US$100 million to this project.
This venture may very well help Google get involved with innovative ideas from the ground level rather than waiting for items to explode, hence creating an unenviable position to purchase. Imagine if Google seed money had been used to help get social mainstays like Facebook, Twitter, Digg or even Wordpress off the ground?
I wonder if they are interested in helping a growing SEM firm with its office renovations? Hmm.
on
This seems to be a great strategic move from big G. Start buying while most in the market are too busy staying afloat. Already there seems to be a lot web 2.0 companies that can make great Google candidates, services like Toodledo or Evernote flash to mind.
The breadth of Google’s services are unfathomable, but there are some recent developments that may just pull users away from Google — at least for some functions. Hope this venture won’t fall into that category.
on
Wondering if it’s worth for seed-stage companies to use Google ventures? I’ll be interested (not only me many may mounted with this question) to know whether shares in the VC fund are available to general investors.
And as of Google trend they usually just want to swallow up all the competition, will it replicate here also?
Frankly -I won’t trust Google, but I respect their business acumen!
on
Google attacking just about anything, this time it is VC terrain!, and becoming more and more annoying! I think this could drastically change the playing ground, yes?
I wonder whether the venture arm will have access to Google data on consumer behavior? If so, I truly hope Google handles the information with respect.
on
Will their investment interests reflect in search results. For instance if google invests in an e-commerce service, will they get an edge over others in search results? if so, wouldn’t that be kind of unfair to those who do not collaborate with google? The search giant is tightlipped about these things.
on
Indeed a good innovative step from Google. In today’s market one can probably acquire more innovation than a few years ago. And as they say, this is the right time (downturn) to open such a initiative.
I think this is great for society. Hopefully some great things will be hatched out because of this.
on
My heart goes with the 200 + guys who lost their jobs at Google. Instead of pulling wool over the eyes of millions of Google fans through these sort of money-tingling ventures, they should protect and guard their employees who strove to make Google the giant that it is today…
on
We will see who they invest in? Google has shown just a tip, they have to be more open. I think if they really will do much seed stage funding, or if like most venture capitalists will they prefer $1 million above?
At this tough economic times Google has opened their venture cash box -sounds promising and at the same time this will encourage a few other VC’s to re-open their cash boxes.
on
Is it an April fool hoax from big G? Joking…
Great move for Google, could be wise strategically, as their announcement says- the current economic downturn is an “ideal time” to launch Google Ventures. Especially at a time when people are losing jobs at a tremendous rate, including Google’s 200 pink slipped crews 😉
on
Does this mean Google will help promote the companies they invest in? Mhhhhhhhhh….I am not sure.
Google says Ventures will focus on a broad range of industries. It will be interesting to see exactly what levels of companies they invest in, as it will open excellent windows into the high level workings and forward plans of top level management at Google.
on
Google will obviously have a controlling stake in any new company that it has funded using its venture capital. Google surely is not a charity organization and would be keeping its options open should the new entity pose any challenge to its supremacy. It is a ploy by Google to kill competition at the very beginning.