Its not true or at least right now its not true. Google has no plans to take on Starbucks or Dunkin Donuts in the near future. But given their huge war chest, don’t be surprised where you see google taking the business. Look at Disney Corporation. Its not enough that you spend the day at a Disney Theme park, they also want you to eat at a Disney restaurant, stay at a Disney hotel, Shop at a Disney Store and used Disney transportation to pick you up at the airport. They are very effective at getting whatever vacation dollars you have to spend and make sure you spend them with Disney.
Well in the Footsteps of companies like Intel, Motorola, Comcast and others Google is getting in the Venture Business. The Wall Street Journal published an article today Titled “Google to Extend Reach With Venture-Capital Arm” by Jessica E. Vascellaro.
To quote the article …
Google Inc. is working on plans to start a venture-capital arm, according to several people briefed on the discussions.
The group will be lead by David Drummond, Google’s senior vice president of corporate development and chief legal officer, according to two of these people. Google has hired William Maris, a 33-year-old former entrepreneur who has worked as an investor, to help set up the venture. How the group will be structured and what sort of investments it is likely to target remain unclear.
Google executives previously have bandied about the idea of launching a venture-capital unit, and the plans could still fall through. Mr. Maris couldn’t be reached for comment.
The move would make Google the latest technology giant to take on a more-formal role in seeding start-ups. Intel Corp. has had a large venture-capital arm for years, as have Motorola Inc., Comcast Corp. and many others. In the consumer-Internet area, Walt Disney Co.’s Steamboat Ventures has invested in a number of Web start-ups. So has Amazon.com Inc., which has funded a number of young companies without structuring a formal fund.
Their track records have been mixed. Corporate venture-capital arms have been hampered by challenges that traditional venture-capital businesses don’t face. Venture capitalists invest in private start-ups at an early stage, usually in hopes of a big payout if the company is sold or if its stock goes public.
Many start-ups fear that taking corporate money limits their options and comes with strings that could turn away other potential investors — such as a right to buy the company at a later date. Some funds with less competitive compensation have struggled to retain managers, and corporate venture funds often don’t allow senior employees to invest personal money in their funds, while other venture funds typically do.
To see the entire article ….
Wells its 10:51 am here in Boston. Its time for my next cup of coffee do you think in the Future I will get that coffee at my local Google Java Café?
Posted by Michael Corey