August 1, 2008 – (HOSTSEARCH.COM) – A number of recent reports have suggested that Google may be considering setting up a Venture Capital arm. One report in the Wall Street Journal (WSJ) suggested preliminary briefings on the issue have already taken place.
The WSJ report went further in suggesting that Google's Senior Vice President of Corporate Development and Chief Legal Officer David Drummond had already been designated to lead the group. In addition, the report suggests former entrepreneur and investor William Maris has been employed by Google to set up the venture. Mr. Maris set up Burlee.com, which is now part of Web.com.
The report went on to suggest that if Google does become a venture capitalist organization, it would follow other technology giants such as Intel Corporation, Motorola Inc., and Comcast Corporation in doing so. Such companies have though had mixed results in the area, primarily because start ups often feel that corporate investment limits options, preferring independent capital where less strings are attached. The move would be a departure for Google, whose cash rich status has traditionally inclined the company to buy other companies, rather than invest in them.
