NOTE: GrowthBeat -- VentureBeat's provocative new marketing-tech event -- is a week away! We've gathered the best and brightest to explore the data, apps, and science of successful marketing. Get the full scoop here, and grab your tickets while they last.
Google has invested $1 million in Comsenz, a Chinese provider of social network software. It’s yet another move by Google to gain a foothold in China.
The investment occurred in July as part of Comsenz’s second round of venture funding, and it was recently revealed in a regulatory filing (see p. 39). Rumors about the investment previously pegged Google’s portion at $5 million. The news follows a report that Google is preparing to launch a joint music download venture in China, largely to take on Chinese search engine Baidu.com, which has been beating Google by offering free music.
As for Google’s American competition, Microsoft has a direct presence in China, while Yahoo owns a large stake in Chinese online marketplace Alibaba.com.
Beijing-based Comsenz provides bulletin board and social networking software, as well as hosting services, to Chinese websites. (We don’t have any more details — not surprisingly, the company’s website is in Chinese.)
Comsenz is backed by former Google board member Michael Moritz. Moritz is a non-managing member at Sequoia Capital China, which owns more than 10 percent of the Chinese company. He left Google’s board last May.
Separately, Google revealed it acquired Peakstream, a company that makes it easier to run applications on multiprocessor systems and thus should help Google boost its internal server architecture, for about $20.3 million (see p. 39). That means Peakstream’s investors lost money on the deal. Peakstream soaked up $23 million over two years (our coverage) from venture firms Foundation, Kleiner Perkins — and yes, there’s that connection again — Sequoia Capital. Kleiner and Sequoia, both original investors in Google, each took in about one-fourth of the acquisition proceeds. Kleiner’s John Doerr also sits on the board of Google.
Matt Marshall contributed to this article.
We're studying digital marketing compensation: how much companies pay CMOs, CDOs, VPs of marketing, and more
, with ChiefDigitalOfficer. Help us out by filling out the survey
, and we'll share the results with you.