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Google Launches Venture Capital Unit

  • CNet , Tuesday, March 31, 2009 1:30 PM
Google is following other Silicon Valley firms in launching its own venture capital arm. On Monday the search giant formally unveiled Google Ventures, which will be funded with $100 million in its first year.

"But wait," says CNet's Stephen Shankland, "isn't there a recession?" Indeed, the National Venture Capital Association just reported that fourth quarter investments dropped 71% from $11.7 billion in 2007 to $3.4 billion in 2008. But that doesn't phase Google. The search giant has said it's confident of its cash position and ability to handle the recession. "Also," says Shankland, "a down economy is a good time to get better terms out of start-ups."

In a blog post, Google Ventures' managing partners Rich Miner and Bill Maris said: "Economically, times are tough, but great ideas come when they will. 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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