While Google (GOOG) is best known for its amazing search engine, let’s face the reality that it’s much bigger than that. Sure they have AdSense, YouTube and plenty of other high profile assets, but it’s still bigger than that as well. So what is it then? It’s the largest venture capital firm in the world.
How can we make such a loaded statement you ask? The definition of venture capital as we understand it is the process of providing financial capital to startup companies in various stages that have a high-potential/high-risk profile. These startups generally hold a unique business model or novel technology. In addition, venture capital in itself is a subset of private equity.
Today the only “real” difference we see between VC firms and Google is that when a VC firm invests, they call it a “round of funding” and when Google does, its called an “acquisition.” Fine. Call it an acquisition or exploratory marshmallow renewable fuel research for all we care. At the end of the day it makes no difference. We rate Google a BUY because of the unique business model it operates in relation to its VC tendencies along with a few other interesting characteristics.
To read the full, original article click on this link: Google May Be the Biggest Venture Capitalist of All - Seeking Alpha
