Google Keeps Venture Partners Looped
A recently published article in Entrepreneur Magazine quoted a Google employee as citing the probability of getting funding from Google Networks, when connected to a member of the Google Networks employee’s own networks as a sizeable influence. Google ventures, launched in 2009, seems to play favorite son with only it own siblings. Does Google hope to attract all the best opportunities, or only venture it is already invested in through third parties?
Google’s article expresses candidly that referred deals from the personal networks of the seven investing partners are the golden children of Google’s venture arm. But opportunity seeking franchise or startup investor might scratch their heads about the point of applying for funding from a “global” venture capital grower that specifically only funds its own grandchildren. What do other investor funds think about such a narrow minded approach? And how can Google Ventures maintain a competitive profile in modern B2B business arenas with such core values?
Google has both promoted (to the Web) and denied (o the FCC) its business goals toward cornering the online market in forward thinking enterprises. Only Google can afford to overlook business opportunities not blessed by their own strategic development and those without personnel already in its own immediate business networks. This leaves good opportunities for angel funding for companies which don’t have the Google seal of Good Housekeeping on them. As a business strategy the entire functionality of a separate funding company seems like an elaborate bit of paperwork.
A curious quote from the Google Ventures article says “We don’t invest to help Google sell products or services. We don’t avoid companies that do that, but it’s not an objective of ours”. This sounds like the way companies talk when they are distinctly trying to not say their fundings are targeted to individuals already associated with their company. Life science companies and bioscience starups don’t really have an association with Google ventures or Google products, but it’s a safe bet the workplaces of those funded startups utilize Google products and apps. Just as if they were really Google business partners.
If you think this doesn’t sound like an equal opportunity funding resource, you’re probably right. Which makes it a target for every ethnic based startup requiring venture capital funding. Google Funding claims it invests in areas which Google “understands”. This is obviously the strategy behind the conception of Google Funding in the first place, to make sure a Google Ventures employee was already part of the ownership of anything they fund. So, what was that about Google not trying to monopolize its business venture clients in a monopoly-type business practice?
So, all a startup CEO needs to do to secure B2B enterprise funding is to target Google Funding using one of its own “areas of understanding” and tapping a Google Funding staff member or employee to be part of the enterprise. Just a hint: you’ll probably get accepted. In case the original CEO’s or partners look for fersher pastures, this leaves the Google ventures staffers holding the bag, and the blueprints and the copyrights. Just as Google intended it to be. (or B2b).


