Product details

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Abstract

Google, one of the world’s leading internet companies, launched its venture capital (VC) arm, Google Ventures, in March 2009. Google Ventures (GV) was set up with a view to finding and developing highly promising start-ups in a number of areas, such as consumer internet, software, clean-tech, bio-tech, and health care, through early-stage investments. Corporate VC was yet to gain a substantial share in the VC industry, while traditional or independent VC accounted for over 90% of the VC money invested in US companies. However, Google, with its dominant position in the technology industry, had several advantages that gave it a strong footing in the VC sector, in turn posing a serious challenge to rival firms. GV had invested in a number of start-ups in diverse businesses. Besides finance, GV offered entrepreneurs several add-on services, including space on its campus to operate. There was, however, general apprehension among start-ups about the conditionalities involved in accessing corporate VC. Corporate venture capitalists were known to have bought out start-ups quite soon after the initial round of funding - a practice generally not witnessed among independent VC firms. GV, with its strong offering of finance and a host of start-up support services, showed the potential to chart new paths in the VC industry. The case study discusses the concept of corporate VC, Google’s entry into the VC market through GV, GV’s business strategy, and the challenges and potential for GV in the VC industry.
Location:
Industry:
Other setting(s):
2011

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Abstract

Google, one of the world’s leading internet companies, launched its venture capital (VC) arm, Google Ventures, in March 2009. Google Ventures (GV) was set up with a view to finding and developing highly promising start-ups in a number of areas, such as consumer internet, software, clean-tech, bio-tech, and health care, through early-stage investments. Corporate VC was yet to gain a substantial share in the VC industry, while traditional or independent VC accounted for over 90% of the VC money invested in US companies. However, Google, with its dominant position in the technology industry, had several advantages that gave it a strong footing in the VC sector, in turn posing a serious challenge to rival firms. GV had invested in a number of start-ups in diverse businesses. Besides finance, GV offered entrepreneurs several add-on services, including space on its campus to operate. There was, however, general apprehension among start-ups about the conditionalities involved in accessing corporate VC. Corporate venture capitalists were known to have bought out start-ups quite soon after the initial round of funding - a practice generally not witnessed among independent VC firms. GV, with its strong offering of finance and a host of start-up support services, showed the potential to chart new paths in the VC industry. The case study discusses the concept of corporate VC, Google’s entry into the VC market through GV, GV’s business strategy, and the challenges and potential for GV in the VC industry.

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Location:
Industry:
Other setting(s):
2011

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