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Google to create venture capital unit in London

Internet giant Google is reportedly creating a European venture capital vehicle in a bid to leverage growth in the continent from an increasing number of technology start-ups.

The company is launching a $100 million fund dedicated to investment in European technology businesses.

Its investment vehicle, Google Ventures, has previously focussed on Silicon Valley companies, and its latest move represents the internet giant’s belief that Europe is primed for tech development.

“As we look around the world, we realise the tech ecosystems are getting bigger and stronger,” said David Drummond, SVP of corporate development at Google. “Nowhere is this truer than in Europe.”

The venture capital vehicle will have four general partners, and will be based in London’s technology city.

Google’s play is smaller than rivalling firms, with Index Ventures notably launching a €400 million fund in Europe earlier this year.

Google Ventures confirmed its initial $100 million investment could rise over time, and analysts predict that start-ups could find the lure to establish links to Google as too good to miss.

Internet rival Facebook launched mobile money services in May, as an increasing amount of technology companies enter into financial services.