Vineeth forwarded this article onto me: Google’s new role: Venture Capitalist. In yet another sign of where we are in the cycle, strategic VC’s are accelerating their activity. Strategic activity tends to peak (along with angels’) right before a market pull back. Google may be a different animal, but many of the strategics are diving in. Maybe this time will be different…
Google’s New Role: Venture Capitalist
The tech giant’s startup investments are narrowing opportunities for
VCs. Other corporations are upping their venture investing, tooJust as it has done to companies in the software, publishing, and
advertising industries, Google is becoming a thorn in the side of
venture capitalists. The owner of the world’s largest Web search engine
is scooping up young tech outfits for a relative pittance, giving
itself first dibs on hot-growth technologies and in some cases boxing
VC funds out of potential big-bang acquisitions and initial public
offerings.
Matt —
Glad you enjoyed the article. It will be interesting to see how the next year holds up for acquisitions, PE deals and corporate investments, given the tighter lending and credit environment.
Seems to me that Google’s increased acquisition activity indicates their belief that they can’t innovate from within and must acquire the pieces.
Should make the venture capital guys with hot companies happy in a way…