Apple, Google and Nokia more active in the venturing business

Kleiner Perkins’ iFund Invests In Stealth Gaming Startup ngmoco

Posted: 31 Jul 2008 10:01 AM CDT

Kleiner Perkins is adding to its iFund portfolio of iPhone-focused startups. It’s latest investment is a series A round in stealth gaming company ngmoco. Kleiner partner Bing Gordon, formerly chief creative officer of Electronic Arts, will join the board (he is also on the board of Zynga, which KP also recently invested in through its regular fund).

Ngmoco’s CEO is another EA refugee, Neil Young (not the aging rock star). Young oversaw the development of hit totles at EA such as Lord of the Rings, The Sims 2, and the about-to-be-released Spore. He left EA in June, and wants to both develop its own games and finance and produce games from other developers. He is applying the same studio model that’s worked so well for EA to a new class of mobile games for the iPhone and future devices that have similar characteristics.

The iFund is a $100 million fund set aside to invest in startups targeting the iPhone as a platform. Other announced investments include mobile social networking service Pelago (which makes Whrrl) and iControl (which lets you control you home security through your home network and your iPhone).

The size of the round was not disclosed.

Google To Launch Venture Fund

Posted: 31 Jul 2008 01:02 AM CDT

The WSJ is reporting that Google is set to launch a venture fund to give it the option of investing in startups instead of just flat out buying them. The fund will be led by Google’s SVP Corporate Development David Drummond and Bill Maris, a long time business friend of Anne Wojcicki, Sergey Brin’s wife. Maris is a tech entrepreneur with a degree in neuroscience and worked with Wojcicki at a San Francisco-based for-profit company called Catalytic Health.

This hasn’t been confirmed by Google, and it’s clear they’ve been thinking about a fund off and on for years. From the article:

The move would make Google the latest technology giant to take on a more-formal role in seeding start-ups. Intel Corp. has had a large venture-capital arm for years, as have Motorola Inc., Comcast Corp. and many others. In the consumer-Internet area, Walt Disney Co.’s Steamboat Ventures has invested in a number of Web start-ups. So has Amazon.com Inc., which has funded a number of young companies without structuring a formal fund.

Their track records have been mixed. Corporate venture-capital arms have been hampered by challenges that traditional venture-capital businesses don’t face. Venture capitalists invest in private start-ups at an early stage, usually in hopes of a big payout if the company is sold or if its stock goes public.

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.

This wouldn’t be the first time Google started a fund to invest in other companies. In June 2007 they launched Gadget Ventures, a pilot program that, in part, invests seed money in companies looking to develop for the gadgets platform. They have also previously invested through Indian VCs.

Nokia Plunks Another $150 Million Into Venture Fund

Posted: 30 Jul 2008 11:27 PM CDT

Nokia doesn’t want to miss the next wave of mobile technologies so it is doubling down on its venture investment activities. The cell phone giant is putting another $150 million to work in Nokia Growth Partners, a fund in which it is the only limited partner. This brings the total capital in the fund to $250 million (Nokia initiated the fund with $100 million in 2004). That is in addition to a $100 million fund of funds also run by Nokia Growth Partners on behalf of Nokia, which is used to sprinkle cash around to other VC firms.

So far the fund has done best investing in mobile chip companies, some of which have been acquired by ATI (BitBoys for $44 million), Broadcom (Global Locate for $143 million), and Dolby (Coding Technologies for $250 million). But it is also an investor in mobile video service Kyte. Generally, it is a alter-stage growth fund that looks for companies with a product ready to ramp up.

The new cash comes at a time when the mobile Web is generating excitement again in Silicon Valley. Most of that excitement right now surrounds the iPhone. Throwing around a little cash to encourage startups to develop cutting-edge apps for Nokia phones is not a bad strategy. The fund will also invest more heavily in China and India, where mobile growth far outstrips the U.S.