Starting a successful business can take an initial injection of capital, but finding suitable investors can be difficult for companies who, as yet, don’t have a track record of success. The BBC has reported on a new venture capital scheme launched by Google, with the aim of helping technology based start-ups across Europe. Here, AJG Direct review this report and look at the impact it can have for new businesses.
“By launching this fund, Google are showing their confidence in the ability of European businesses to deliver exciting and innovative new products”, said Paul Gillett, manager of AJG Direct. “Investment at the outset, especially from such a big brand, can make the difference between success and failure for a new entrepreneur.”
Google already administer a similar, and highly successful scheme in the United States that has provided funds to over 250 companies in 5 years, including Uber, the company who are transforming taxi services. This new scheme will be open for bids by companies across Europe, and the fund stands at $100 million, approximately £58 million.
Google’s Bill Marris, the managing partner at Google Ventures, explained that it was the success of United Kingdom start-ups that had convinced them to create this fund. Companies such as Spotify, Soundcloud, and Supercell have made an immediate impact, and Marris believes that there are many more gems waiting to be discovered. The operation will be based in the Silicon Roundabout area of East London, one of the foremost creative hubs in Europe. Google have made clear, however, that the fund represents an investment for them, and they are looking for businesses that are likely to offer them a real return on investment.
“An investment from a company like Google, can be so helpful to a start up business”, said Paul Gillett. “It can be used to fund essential functions such as market research, or to initiate a direct marketing campaign that can help a company create a brand presence in the vital early days. I know how hard it is to take an idea on paper and turn it into a company, but investment and expert advice can go a long way.”
Even if your business isn’t eligible for the Google fund, you can still increase your chances of success by creating a supply of good quality customers. That’s where AJG Direct can prove invaluable, whatever sector of business you’re in.