The only argument I buy here is Jessica's. I agree that corporate vc could limit exit options. However, I think Fred's general arguments against corporate vc

The only argument I buy here is Jessica's. I agree that corporate vc could limit exit options. However, I think Fred's general arguments against corporate vc don't fully apply to Google. First, Google probably does have the talent in-house to identify and nurture young businesses. Google has a perspective on what kind of web businesses can create long-term value that few VC's can match. That business insight is paired with a huge amount of technical expertise and infrastructure that would be invaluable for a young startup. As for the argument about corporations having misaligned incentives, that almost certainly depends on how the investment entity is structured. Fred is right that a single exit is not a recurring revenue stream, but I assume that like any VC, Google would want to show regular long-term returns. VC is an industry where performance is already spotty. I believe that Google has as good a chance as any firm to deliver better than market returns. Overall, I think it's premature to make a blanket statement without understanding how the investment arm at Google is structured or staffed. I personally would be excited to get Goog investment.