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Google Ventures increases funding pot to $300m a year

Edging towards Intel
Thu Nov 08 2012, 15:13
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INTERNET ADVERTISING BROKER Google has increased the amount its venture capital arm Google Ventures will invest every year to $300m.

Google Ventures has been up and running since 2009 spending a small chunk of Google's large cash reserves on funding startup companies. Now Reuters reports that Google Ventures has increased the amount it plans to invest from $200m a year to $300m.

According to Reuters, Google's decision to grant its venture capital arm access to more cash is due to wanting to invest in later stage funding rounds, which require tens of millions to be put into firms that have been around for a couple of years. Until now Google Ventures has generally stuck to 'seed' capital funding, though it did one or two deals worth between $20m and $50m.

Bill Maris, managing partner at Google Ventures told Reuters the extra money "puts a lot more wood behind the arrow if we need it". Maris added that Larry Page had repeatedly asked him what he could do with a billion dollars a year, a sum that would make Google Ventures one of the largest corporate venture capital funds.

While Google started its venture capital fund in 2009, Intel has been doing the same thing for more than two decades under its Intel Capital arm. The goal behind both Intel's and Google's venture capital arms is to diversify their firms' liquid assets away from their core businesses and potentially get higher returns on capital than leaving the cash in a bank account collecting low interest. µ

 

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