Google Ventures takes flight

So yes, it looks like Google (NASDAQ: GOOG) is jumping at this potential opportunity by starting its own venture fund (simply called Google Ventures). In fact, the goal will be to put about $100 million to work in the first year, according to the Wall Street Journal (a paid publication). In light of Google's enormous cash hoard, this is a nice risk-adjusted bet on perhaps finding the next . . . Cisco (NASDAQ: CSCO), Salesforce.com (NYSE: CRM) or even Google.

Besides, Google Ventures will bring more than just money to the table. Basically, it will bring lots of credibility to a company.

OK, what types of companies will Google Ventures look at? Well, the mandate is fairly broad, with interest in categories like cleantech, biotech, software, information technology and healthcare. And the amounts will range from seed investments to multi-million dollar rounds.

To start off, Rich Miner (a wireless expert from Google and the co-founder of Android) and William Maris (an investor and entrepreneur) will operate the fund. Although, in light of the buzz the fund will probably get, their biggest hurdle may be to sift through the thousands of business plans they'll get.

Tom Taulli is the author of various books, including The Complete M&A Handbook and the founder of BizEquity, a free online business valuation tool for small businesses.