Train Thoughts

I heard the rumors of this fund and thought if Google launched a fund, that it would be really different than the status quo - sort of like the Gmail of Venture Capital.  It doesn’t look like that’s the case.  Seems like a pretty typical venture fund, but with possibly some access to things internal at Google.  Sounds kind of like the model of Intel’s VC arm.

I was asked this morning if I’d take Google Venture’s money.  Yes.  I would - under the right circumstances.  I’d consider them strategic (in the internet/web space).  Sometimes it makes sense to have a strategic investor, but often times it doesn’t.  Also, if you’re syndicating a round, it will be interesting to hear what other venture funds think of Google joining the round.  Some will like it.  Others won’t.  That’s just the way it is.

One thing to think about.  How would you feel if Google invested in your startup and then built a competing service?  For example, if Google was an investor in HubPages (a company  I cofounded) and then launched Google Knol, I wouldn’t feel good about having their money in exchange for giving them access to my business.   Which leads me to believe that entrepreneurs in energy or sectors outside of Google’s wheelhouse will be more likely to pursue money from them than early stage web companies.  Time will tell…