Google may launch venture capital arm

According to the Wall St. Journal, Google is currently planning to start its own venture capital group. If true, the move would enable Google to not only seed some interesting start-ups, but also get an early foot in the door when it comes time to purchase them or reap the rewards of a later IPO.

The Journal sources say the group will be led by David Drummond, Google's senior vice president of corporate development and chief legal officer. The company has also hired entrepreneur William Maris to help set up the new VC arm.

Google certainly has the money for such a venture, but it also has enough cash to purchase any start-ups that may catch its eye--without the hassle of funding them upfront. As the Journal points out, corporate VCs are at a disadvantage in the marketplace:

Many start-ups fear that taking corporate money limits their options and comes with strings that could turn away other potential investors -- such as a right to buy the company at a later date. Some funds with less competitive compensation have struggled to retain managers, and corporate venture funds often don't allow senior employees to invest personal money in their funds, while other venture funds typically do.

Still, Google wouldn't be alone in the idea. Intel, Motorola, Comcast, Disney and Amazon, to name just a few, already have their own VC arms.