Google Ventures - Google's New Venture Capital Fund

Google just announced their venture capital fund called Google Ventures. Google will invest $100 million in its VC fund in its first year, which will be focused on making seed to early stage investments in upcoming consumer Internet, software, hardware, clean-tech, bio-tech and health care startups. According to the New York Times, Google Ventures has already made a couple of investments: 

Silver Spring Networks, a company that makes technology to help manage electric grids, and Pixazza, which links online images with related products that can be purchased.

More from the Google blog:

Economically, times are tough, but great ideas come when they will. If anything, we think the current downturn is an ideal time to invest in nascent companies that have the chance to be the "next big thing," and we'll be working hard to find them. If you think you have the next big idea, or if you just want to learn more, please see our website at www.google.com/ventures.

Seems like a great opportunity for entrepreneurs and startups. Fair to expect that companies funded by Google Ventures would have a greater chance of acquisition by Google itself and they would also benefit from the access to Googlers.