Google has announced a new venture capital funding arm, tagged as “Google Ventures”, intended to provide financial help to start-up firms working on some innovative technology.
The search engine giant is to invest around $100 million in its first year in various sectors including software, consumer internet, clean technology, bio-technology, and healthcare.
However the company is planning to join forces with some of the prominent venture capital firms of the Silicon Valley, in a bid to raise funds worth $500 million or more to provide notable back up to startups.
Google’s new arm will be led by managing partners Rich Miner, a former executive of the company’s mobile arm, and William Maris, an ex-entrepreneur.
The managing partners asserted that the new arm would see a great fusion of “best practices of top-tier, financially-focussed” venture capitalist firms with the Google’s “unique technical expertise and brand”.
The duo further went on to say that there would be very few firms within the new arm’s major domains that have been kept out for consideration.
Upholding the significance of the new funding division in the current economic situation, the duo wrote, “If anything, we think the current downturn is an ideal time to invest in nascent companies that have the chance to be the ‘next big thing’, and we’ll be working hard to find them”.
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In every dark cloud there is a silver lining. In recessions, some of the greatest ideas sometimes arise. Google itself was launched just before the last dotcom bust and received significant investments during that bumpy period. The search giant is right to set aside some funds, a fraction of the money it has sitting in banks, to nurture potential "Googles" of tomorrow.
(London Stock Exchange)