A report on The Wall Street Journal’s web site tells that Google is considering again developing a venture capital arm.
The people who were told about the discussion explained that David Drummond, Google’s senior vice president, would lead the effort .According to the reports, 33-years-old William Maris who is a former entrepreneur has been hired by the group for this purpose.
The search engine has considered that idea before but couldn’t work on that plan.
If this new venture succeeds, it would put Google in the more-official role of supporting commencement off the ground as Google well-known for buying companies instead of investing in them. Intel, Hewlett-Packard and Motorola are some other Silicon Valley companies that have extensive VC track records.
The step is being taken at the time when it is hard for overall venture capital investing. Earlier this month, Dow Jones VentureSource told about 12 percent drop in VC investment in the second quarter. It was just around $6.64 billion into 602 deals that is the lowest in three years in the quarterly deal account.
At the expense of companies looking for first-time funding, more venture firms are making money to help later-stage companies. In the second quarter, there was almost 12 percent ($1.6 billion) drop in the sunken amount of money into startups looking for first round funds. On the other hand, there was an increase of 14 percent ($1.3 billion) in later stage deals as these companies had fewer chances to go to public. There wasn’t any venture-backed company in the 2nd quarter that went to public.
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