Categories: Tech & Society

Exclusive: Google Ventures Beefs Up Fund Size to $300 Million a Year

Google will increase the cash it allocates to its venture-capital arm to up to $300 million a year from $200 million, catapulting Google Ventures into the top echelon of corporate venture-capital funds.

Access to that sizeable checkbook means Google Ventures will be able to invest in more later-stage financing rounds, which tend to be in the tens of millions of dollars or more per investor.

It puts the firm on the same footing as more established corporate venture funds such as Intel’s Intel Capital, which typically invests $300-$500 million a year.

“It puts a lot more wood behind the arrow if we need it,” said Bill Maris, managing partner of Google Ventures.

Part of the rationale behind the increase is that Google Ventures is a relatively young firm, founded in 2009. Some of the companies it backed two or three years ago are now at later stages, potentially requiring larger cash infusions to grow further.

Google Ventures has taken an eclectic approach, investing in a broad spectrum of companies ranging from medicine to clean power to coupon companies.

Every year, it typically funds 40-50 “seed-stage” deals where it invests $250,000 or less in a company, and perhaps around 15 deals where it invests up to $10 million, Maris said. It aims to complete one or two deals annually in the $20-$50 million range, Maris said.

LACKING SUPERSTARS

Some of its investments include Nest, a smart-thermostat company; Foundation Medicine, which applies genomic analysis to cancer care; Relay Rides, a carsharing service; and smart-grid company Silver Spring Networks. Last year, its portfolio company HomeAway raised $216 million in an initial public offering.

Still, Google Ventures lacks superstar companies such as microblogging service Twitter or online bulletin-board company Pinterest. The firm’s recent hiring of high-profile entrepreneur Kevin Rose as a partner could help attract higher-profile deals.

Soon it could have even more cash to play around with. “Larry has repeatedly asked me: ‘What do you think you could do with a billion a year?'” said Maris, referring to Google chief executive Larry Page.

Via: Reuters

Prateek Panda

Prateek is the Founder of TheTechPanda. He's passionate about technology startups and entrepreneurship and enjoys speaking to new founders every day. Prateek has also been consistently regarded as one of the top marketing experts in the region.

Recent Posts

The AI Editor has arrived: What Human-in-the-Loop publishing & ecommerce really looks like

Artificial Intelligence is no longer just a futuristic concept in publishing and e-commerce. It’s here,…

3 days ago

After the artist & the writer it’s the developer’s turn to rethink careers as AI starts coding

The artist and the writer have been living in fear of AI taking over their…

4 days ago

Geek Appeal: New gadgets & apps on the block

The Tech Panda takes a look at recently launched gadgets & apps in the market.…

5 days ago

With top engineers from India in hot demand globally, Ness Digital Engineering champions internal pathways to leadership  

India’s tech and IT sector continues to grow, expected to top $300 billion in fiscal…

5 days ago

NTT debuts ultra-fast IOWN network with cross-border Kabuki performance

Japanese tech giant NTT showcased the latest in Innovative Optical and Wireless Network (IOWN) technology…

1 week ago

Funding alert: Tech startups that raked in moolah this month

The Tech Panda takes a look at recent funding events in the tech ecosystem, seeking…

1 week ago