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Sunday, August 3, 2008

Google Could Be Your Next Investment Angel!

Posted by @ 10:56 pm
1
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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.



Courtney Mills Courtney is an online marketing and communications specialist at ineedhits - a leading search engine marketing firm with over 16 years experience. Courtney has been living and breathing online marketing for over 5 years. She specializes in web and communication marketing, while providing news and opinion to online marketing communities.

View Courtney Mills's profile






Discussion (1 - comment)

Just wanted to distinguish between their new venture arm and the use of the word Angel. There are definitely Google Angels, or rather X-google angels, that are out there funding startups with their own capital.

This announcement, on the other hand is for a full out venture capital arm. I’m not sure how much it will differ from the typical corporate strategic investment programs.

Generally, the fear entrepreneurs feel in taking money from these corporate strategic investors is that they may be more self interested. The big corporation who financed the entrepreneur may be pushing that startup in a direction that suites them (google, intel, etc), rather than pushing them to be a break out player in the market generating huge financial return (like a typical VC would)

By evbart - August 4, 2008




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