Google VC Arm? Good Luck with That!

Kevin Maney writes: There's a lot of skepticism around the tech industry regarding Google's apparent plan to create a venture capital unit. The phrase "more money than sense" comes to mind -- kind of like the newly wealthy guy who decides to invest in a high-end restaurant.

First of all, few corporate VC operations actually have much success. Intel Capital has been about the best at pumping money into promising start-ups, but (like any VC fund) Intel has invested in way more dogs than winners. Nokia has long had a venture arm that's pretty well thought of. And then you've got all the companies that have tried this tactic and either cut it back or shelved it altogether: Dell, Microsoft, IBM, Motorola. The reasons corporate VCs don't do so well are many, including the fact that corporate VCs don't personally stand to get rich if a start-up hits it big.

Google also already does invest in start-ups. The company has put money into Clearwire, FON, and 23andMe -- which is run by Google co-founder Sergey Brin's wife. Just last month, Google invested in Comsenz, a Chinese social networking company.

Google's philanthropic arm, Google.org, has invested in alternative energy companies, including eSolar and Aptera Motors. So even if Google joins the VC club, it's not like it will be starting an activity it has never done.

Then again, it's Google, so it might try something different and it might actually work. We'll watch and see.