In my last post I commented on how Google and Yahoo should each have their own venture capital departments based on how much they are spending. Maybe not the best idea. I spoke with my friend who currently works at Google and he brought up a great point. If Google created their own venture capital department, it would be the same as suggesting that they don’t have much faith in their internal R&D department. Additionally, it makes much more sense for Google and Yahoo to purchase companies that have a proven track record rather than going out and investing in start-up ideas. So maybe I wrote the previous article late at night … thanks for pointing out the flaw in my thinking Erik!