- To find a use for the mountains of cash they accumulate and never distribute back to shareholders
- To fund firms that employees want to leave to start, to keep them in the corporate fold (and potentially compensate the founders better than they could as employees)
- To fund technologies they want outside the stultifying corporate culture that stops true innovation (Cisco is famous for this)
- To ensure that there are new firms using their technology and thus growing their revenue base
I code. I used to be super-hardcore in Silicon Valley. I moved to London, sold out and worked for financial services companies. Now back to the startup life. Here's where I rant at nobody in particular.
Wednesday, April 01, 2009
Google Launches VC Arm
This has been all over teh interwebs. It's not actually that unusual for a large, cash-rich technology firm to have its own VC arm: Intel and Cisco are notable players in the Corporate VC space already, and Microsoft used to be.
Large tech firms do this for a number of reasons:
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