Google Ventures (aka What’s In a Name?)

You can only be amused that Google has launched a new venture capital operation but that much of the early coverage is devoted to the fact Google doesn’t own the URL.

I guess that’s an interesting twist but the “news” is that Google’s decision to get into the venture capital business is probably perfect. With many VCs, in general, hunkering down amid the collapse of the financial markets, a non-existent IPO market, and the lack of exits, the market is ripe for Google to sprinkle some of its AdSense dollars on investment-hungry start-ups.

In theory, difficult economic periods and industry downturns are great time to invest because valuations are reasonable, costs (people, hardware, bandwidth, office space) are lower, and high-quality people are more readily available.

By launching Google Ventures now, Google will likely have the pick of start-up litter and have more control over the investments it is making – as opposed to what’s it done in recent years by spending millions acquiring start-ups.

As a result, the isn’t so much “what’s in a name?” as opposed to Google getting into the venture business.

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