Google to launch $100 million VC fund

Google Ventures will aid start-up companies in software, bio-tech, health care, and more.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Julianne Pepitone, CNNMoney.com contributing writer

google.mkw.gif

NEW YORK (CNNMoney.com) -- Google is launching a $100 million venture capital fund to develop start-up companies in a range of industries, the company announced Monday night in a blog post.

Mountain View, Calif.-based Google Inc. (GOOG, Fortune 500) said Google Ventures will find and fund "exceptional start-ups" in such fields as consumer Internet, software, biotechnology and health care.

"They've been investing and acquiring smaller companies for years," said Marianne Wolk, analyst at Susquehanna Financial Group. "This announcement is a natural extension of that." Plus, she added, the $100 million is a relatively small investment compared to the $2 billion Google spent on research and development in 2008.

The company will look to its employees to help evaluate both specific start-ups and investment areas in general, said the blog post, which was signed by Google Ventures managing partners Rich Miner and Bill Maris.

A recession may seem to be an unlikely time to launch a capital fund, as Miner and Maris noted in the post.

"Great ideas come when they will," the blog post said. "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."

Shares of Google were trading up $7.22, or 2.1%, at $349.91 at 1:25 p.m. ET. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Some Converse copycats cost big bucks A few bargain brands got swept up in Chuck Taylor's net, but others cost a pretty penny. More
Urban infrastructure gets a second life Railroad beds become parks, power plants become aquariums and slaughterhouses are now art centers as an industrial past turns people-centric. More
Boomtown moms From working mothers raising their kids in RVs to stay-at-home moms who spend their days organizing events for the Oil Wives club, meet the moms of North Dakota's oil boom. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.