Google could be the main investor of your next start-up if their plans of making a venture capital group actually go ahead.
In the wake of the success of Google.org, the Google foundation which invests in companies that are pursuing goals that the Google founders deem worthwhile, Google are now planning a Google venture capital group.
The Wall Street Journal reports that planning for a venture capital group has already begun, with David Drummond, Google’s senior vice president of corporate development and chief legal officer, steering the ship.
The WSJ mentions the following:
The move would make Google the latest technology giant to take on a more-formal role in seeding start-ups. Intel Corp. has had a large venture-capital arm for years, as have Motorola Inc., Comcast Corp. and many others. In the consumer-Internet area, Walt Disney Co.’s Steamboat Ventures has invested in a number of Web start-ups. So has Amazon.com Inc., which has funded a number of young companies without structuring a formal fund.
Their track records have been mixed. Corporate venture-capital arms have been hampered by challenges that traditional venture-capital businesses don’t face. Venture capitalists invest in private start-ups at an early stage, usually in hopes of a big payout if the company is sold or if its stock goes public.
This plan could be quite risky for Google, who is already being accused of having a monopoly on search by its competitors. Any investments that aim to influence the development of the market could end up being shown as evidence of monopolization.
This also has the potential to fail for Google if startups are weary of accepting investments from Google if they feel there are strings attached.
So if you’re not deterred by Google being your main investor for your next start-up, then we will keep you posted of any future developments.