CapitalG

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CapitalG
Subsidiary
Industry Venture capital
Founded 2013; 5 years ago (2013)
Headquarters San Francisco, California,
United States
Parent Google Inc (2013–2015)
Alphabet Inc. (2015–present)
Website capitalg.com

CapitalG (formerly Google Capital) is the late-stage growth venture capital fund financed by Alphabet Inc., and based in San Francisco, CA.[1] Founded in 2013, it focuses on larger, growth stage technology companies, and invests for profit rather than strategically for Google.[2] In addition to capital investment, CapitalG's approach includes giving portfolio companies access to Google's people, knowledge, and culture to support the companies' growth and offer them guidance. This includes connecting them with a roster of advisors, such as David Drummond (Alphabet's SVP and Chairman of CapitalG) and Sundar Pichai (Google's CEO).[3]

Since 2013, CapitalG has invested in 25 companies, in areas such as big data, financial technology, security, and e-learning.[4]

On August 10, 2015, Google Inc. announced plans for a corporate restructuring wherein CapitalG would become the subsidiary of a new umbrella company, Alphabet Inc., alongside Google itself.[5]

In November 2016, Google Capital was re-branded as CapitalG.[6]

Team[edit]

CapitalG was started by partner David Lawee, formerly Google's Vice President of Corporate Development, and before that, Google's first Vice President of Marketing. Lawee was joined by partners Gene Frantz (formerly a partner at private equity firm TPG), Laela Sturdy (former Director of Sales & Business Operations at Google) and Gretchen Howard (former Managing Director in Sales & Business Operations at Google.)[7]

CapitalG also comprises over 30 advisors from senior positions within Google, who offer portfolio companies guidance in business areas such as data science, engineering, marketing, and product management.[8]

Investments[edit]

In 2013, CapitalG announced its first two investments in SurveyMonkey, a cloud-based online survey and questionnaire tool, and Lending Club, a peer-to-peer lending company based in San Francisco.[9][10]

In 2014, CapitalG made private investments in an additional nine companies, including the Bangalore-based online real estate startup CommonFloor,[11] Freshworks, a San Francisco-based customer support platform,[12] Credit Karma, a free credit and financial management platform,[13] and China-based optical component company, Innolight.[14]

In April 2015, CapitalG announced an investment in ZenPayroll (now known as Gusto).[15]

In September 2015, CapitalG announced an investment in Oscar Health Insurance Corp., a U.S.-based health insurance startup.[16]

In March 2016, CapitalG invested in India-based Girnar Software, owner of CarDekho and many more portals.

In July 2016 CapitalG made its first public company investment. The investment made it the largest shareholder in online care portal Care.com.[17]

In November 2016, CapitalG invested in Airbnb, Snap Inc. and Stripe.

In March 2017, CapitalG invested in Looker.

In October 2017, CapitalG invested $1 billion in Lyft.[18]

In March 2018, CapitalG invested UiPath Inc..[19]

Relationship to GV[edit]

CapitalG focuses on later stage and growth equity investments, while GV invests in companies across all stages and industries. In addition, Google's Corporate Development group does acquisitions and investments that are strategic for Google's products and business. All three investment groups are managed under David Drummond (Alphabet's SVP) at Google.[20]

References[edit]

  1. ^ Richard Byrne Reilly (2014-02-20). "Google Capital: Meet the $300 million cousin to Google Ventures | VentureBeat | Deals | by Richard Byrne Reilly". VentureBeat. Retrieved 2015-08-12. 
  2. ^ "Google's Growth Equity Investment Fund". Google Capital. Retrieved 2015-08-12. 
  3. ^ "Google's Growth Equity Investment Fund". Archived from the original on May 12, 2015. Retrieved May 10, 2015. 
  4. ^ "Google Capital Crunchbase". Archived from the original on January 11, 2015. Retrieved May 10, 2015. 
  5. ^ "Google to be publicly traded under Alphabet Inc. in planned restructuring". CBC News. 2015-08-10. Retrieved 2015-08-10. 
  6. ^ Kumparak, Greg (4 November 2016). "Google Capital changes its name to CapitalG (Update: and quietly confirms it invested in Snapchat)". TechCrunch. AOL. Retrieved 5 November 2016. 
  7. ^ "Google's Growth Equity Investment Fund". Archived from the original on May 12, 2015. Retrieved May 10, 2015. 
  8. ^ "Google's Growth Equity Investment Fund". Archived from the original on May 12, 2015. Retrieved May 10, 2015. 
  9. ^ "SurveyMonkey Raises $800 Million in Debt and Equity for Tender Offer - Kara Swisher - News". AllThingsD. 2013-01-16. Retrieved 2015-08-12. 
  10. ^ Dakin Campbell Ari Levy (2013-05-02). "Google Buys Stake in LendingClub Startup Valued at $1.55 Billion - Bloomberg Business". Bloomberg.com. Retrieved 2015-08-12. 
  11. ^ "Google Capital Invests In Indian Real-Estate Platform CommonFloor". TechCrunch. 2015-01-08. Retrieved 2015-08-12. 
  12. ^ Eric Blattberg (2014-06-12). "Google Capital jumps into $31M round for Freshdesk | VentureBeat | Deals | by Eric Blattberg". VentureBeat. Retrieved 2015-08-12. 
  13. ^ "Credit Karma Confirms New $85M Financing Round Led By Google Capital". TechCrunch. 2014-03-12. Retrieved 2015-08-12. 
  14. ^ Cheung, Sonja (2014-09-29). "Google Capital Makes First China Investment, Backs InnoLight - Venture Capital Dispatch - WSJ". Blogs.wsj.com. Retrieved 2015-08-12. 
  15. ^ Huet, Ellen (2015-06-04). "ZenPayroll Scoops Up $60 Million Funding Round Led By Google Capital". Forbes. Retrieved 2015-08-12. 
  16. ^ MacMillan, Douglas (2015-09-15). "Google Bets on Insurance Startup Oscar Health". WSJ Blogs - Digits. Retrieved 2015-09-16. 
  17. ^ Clark, Jack (2016-06-29). "Google Capital Makes First Public Company Investment in Care.com". Bloomberg.com. Retrieved 2016-08-05. 
  18. ^ Bhuiyan, Johana (2017-10-19). "Alphabet is leading a $1 billion round in Lyft that values the company at $11 billion". Recode.com. 
  19. ^ "UiPath confirms $153M at $1.1B valuation from Accel, CapitalG and KP for its "software robots"". techcrunch.com. 2018-03-06. 
  20. ^ "David Drummond Crunchbase". Archived from the original on January 9, 2015. Retrieved May 10, 2015. 

External links[edit]