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Google Working On a Formal VC Arm

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Google (NSDQ: GOOG) has done a number of strategic investments over the years, and usually big amounts in big-issue-tackling companies, like powerline internet, WiMax, and others. It even has a non-profit foundation to invest in global challenges. Now it wants to start a formal venture capital arm, a la Intel (NSDQ: INTC) Capital, Time Warner (NYSE: TWX) Investment, Steamboat (Disney’s (NYSE: DIS) venture arm) or BlueRun Ventures (formerly part of Nokia), reports WSJ, citing sources. The group will be lead by David Drummond, Google’s SVP of corp dev, chief legal officer, and it has also hired William Maris, a 33-year-old former entrepreneur who has worked as an investor, to help set up the venture.

What’s Google’s advantage over other VC funds? Well, technical expertise, reach and distribution, and then in-built tools for monetization of services and products for these startups. This new venture could help institutionalize some of Google’s previous investments, and maybe even look at some new/allied areas of expansion and investment.

One Response to “Google Working On a Formal VC Arm”

  1. The key here for the next big thing is to have a way to monetize your investment. Twitter spent 20 million and did not have a monetization method. A company I have been trying to find information on is Both Google & Yahoo agree that the next wave of search is human edited search. is on the right track and I think they will be the next big thing on the internet because they have a monetization method, are already creating revenue, are delivering a great product for their target audience, and creating limitless jobs by partnering with their users. Imagine combining Wikipedia with Google. Boomja uses humans to organize the internet, splits advertising impressions with editors, and creates targeted search categories. This is a natural fit for Google because they use Google’s AdSense ads to generate revenue.