Like a young child
standing in front of classmates with a big grin on his face ready to spill the beans, Google's venture capital arm, Google Ventures, launched new information on its Web site explaining the company
will build a team of entrepreneurs, subject-matter experts and investors committed to providing more than financial backing to companies that fit the bill. Aside from providing capital, Google also
plans to assist with product launches, code reviews, user interface designs and more.
Google's decision to make more investments in start-ups will give the company first look into
emerging technologies with the potential to drive their direction and/or acquire them as they reach maturity, according to Chase Norlin, chief executive officer at online video syndication company
AlphaBird.
Javier Rojas, partner and managing director at venture capital firm Kennet, says Google touches so many types of technologies that it can't possibly have a grasp on everything.
Investing in start-ups provides a window into strategic markets. "It's particularly important for mobile because of the battle between iPhone and Android, as well as the tsunami being created in other
areas of tech," he says. "Mobile, however, is an example of a highly fragmented market. You don't know where success will come from, so it's best to have a view into a variety of technologies."
Eric Facas, partner at Tallwave, a venture management and marketing services firm, says the investments allow Google to tap into the technology at a very early stage because it gives them a
relationship from the start that could lead to an acquisition.
Jeff Beard, president at Localeze, agrees that such investments gives Google a better pulse on emerging technologies. It's
also a sign that the company is willing to be more open and transparent.
Sometimes it's important for major corporations to invest in start-ups to see how markets adopt the technologies,
says Ken Elefant, general partner at Opus Capital. He points to Google's "amazing amount of entrepreneurial spirit," but says there are still many people at companies other than Google who have new
ideas, which may not be "copacetic" with the way Google takes products to market. "Google, in many cases can be a great channel for start-up companies," Elefant says. "A start-up being able to tap
in that channel is very powerful."