GV’s Investment Strategy: A Deep Dive with CEO David Krane

As the CEO of GV, Google’s venture capital arm, David Krane oversees a team that has invested in over 800 companies across the last five years, with more than $10 billion invested across its 15-year history. In a recent conversation, Krane shed light on GV’s investment strategy, its approach to working with Google, and the opportunities and challenges that come with being a venture capital firm backed by a tech giant.

GV’s Investment Approach

GV’s investment strategy is centered around financial returns, with a focus on investing in companies that have the potential to drive significant growth and innovation. The firm’s investments are split roughly evenly between life sciences, healthcare, and biotech, and an all-encompassing “digital” category. This approach has led GV to invest in a wide range of companies, from data infrastructure startups like Cribl to ride-hailing giants like Uber.

Working with Google

As a venture capital firm backed by Google, GV has a unique relationship with its parent company. Krane emphasized that GV operates independently, with the freedom to invest in companies that align with its strategy, regardless of whether they are related to Google’s business. However, GV also works closely with Google to identify opportunities and share knowledge. This collaboration enables GV to leverage Google’s expertise and resources, while also providing Google with access to innovative companies and technologies.

The Fine Line Between GV and CapitalG

GV and CapitalG, Alphabet’s growth-stage investment arm, often co-invest in companies, but Krane emphasized that the two firms operate independently and do not compete with each other. Instead, they focus on supporting companies at different stages of their growth. GV tends to invest in earlier-stage companies, while CapitalG focuses on later-stage investments.

The No-Nos of GV’s Investment Strategy

While GV has a broad remit, there are some areas where the firm is more cautious. For example, GV avoids actively enticing talent within Google to start companies solely for the purpose of investing in them. Instead, the firm focuses on supporting entrepreneurs who have already decided to leave Google to pursue their own ventures.

Conclusion

GV’s investment strategy is centered around identifying and supporting innovative companies that have the potential to drive significant growth and impact. With its unique relationship with Google and its focus on financial returns, GV is well-positioned to continue investing in companies that are shaping the future of technology.