Google’s Buyout of Nest Raises Privacy Concerns
Nest was one of the more than 200 companies that have been assisted by Google Ventures, and the purchase by Google has paid high dividends to venture capital firms. Deals like this one are what keep venture capitalists investing despite the fact that a significant number of startups fail. In addition to funds, Google Ventures provides startups with support in marketing, design, recruiting and other essential requirements. Google Venture workshops provide practical training and one-on-one service. Google Ventures invests in a range of sectors including health care, transport, alternative energy, technology development and more.
While it’s clear that the buyout offers huge financial benefits to Nest, there is much speculation as to what Google gets out of the deal. The most obvious, and for some the most worrying, is that by entering the market of home appliances Google will have access to more data, irrespective of assurances from Matt Rogers to the contrary. Another advantage for Google is that the designer of Apple’s iPod and co-founder of Nest Labs, Tony Fadell, will remain with the company. Also, up to thirty percent of Nest’s employees formerly worked at Apple, and diversifying will help the company boost its growth.
As we move into an era where the so-called “Internet of Everything” will increasingly remotely control many items in our homes, offices and outdoor areas, some caution regarding privacy policies is not amiss. But like it or not, the world is moving toward connecting our lives to the internet, and companies at the forefront of the technology facilitating this are sure to reap some significant rewards.