Google Ventures Increasing Fund Size To $300 Million Per Year

Posted Nov 10, 2012

Google is increasing the cash that they are allocating to their venture-capital arm up to $300 million a year from $200 million.  Google Ventures will be able to invest in later-stage financing rounds as a result of this round of funding.  This puts Google in the same line as Intel Capital, which generally invests around $300-$500 million per year.

“It puts a lot more wood behind the arrow if we need it,” stated Google Ventures managing partner Bill Maris.  The Google Ventures arm was created in 2009 and some of the companies that they invested in two to three years ago are now at their later stages.  These companies need larger cash infusions to grow larger.

Every year Google Ventures is spending around $250,000 or less in a company across 40-50 seed-stage deals.  They also do around 15 deals where they invest up to $10 million.  Google Ventures is aiming to complete one or two deals annually in the $20-$50 million.

Some of Google’s investments include Nest, Foundation Medicine, Relay Rides, HomeAway, and Silver Spring Networks.  Google Ventures recently hired Kevin Rose as a partner to help find high-profile deals.

“Larry has repeatedly asked me: ‘What do you think you could do with a billion a year?'” stated Mr. Maris when referring to Google CEO Larry Page.  This is an indication that Google Ventures will be receiving a lot more in their budget in the near future.