Google and Facebook will announce an agreement today to create a venture capital fund for internet entrepreneurs and organizations that will support the creation of new businesses.
The announcement comes as Google and its other main partners are working to expand its online advertising and video business into other areas, including health care, education and other social and commercial sectors.
Google and Facebook are already involved in a venture to build a cloud-based advertising platform, with the company now investing $500 million to help the company build a mobile app that will enable the company to sell ads to businesses online and online platforms.
Facebook is also in talks to partner with Facebook to build its social media advertising business, a company spokeswoman said.
“Today, we’re announcing our first venture capital investment to fund the creation and operation of a new venture capital vehicle that will build on Google’s growing online advertising business to support the formation of new ventures in new sectors, from healthcare to education,” David Karp, executive chairman and chief executive of the venture capital company, said in a statement.
“We’ll be joining forces with companies that will bring innovative ideas to the digital space and the new business opportunities that come with it.”
The investment comes at a time when Google is struggling to find its footing in the digital advertising space, which is dominated by Facebook, Apple and other technology giants.
The company has been trying to diversify its advertising revenue to create new categories of ads that people will not associate with its own search results.
But with Facebook and Apple, Google is competing head-on against other tech giants like Microsoft and Yahoo.
Facebook has struggled to turn its ad business around.
“In our search history, we’ve seen the biggest success of a billion dollars from Google.
Now we’re going to help them grow,” Mark Zuckerberg, the chief executive, said last month.
Facebook also said last week that it plans to invest $1.4 billion in a new media venture, as it seeks to boost its online ads revenue.
The Google-Facebook investment follows the announcement earlier this month by Facebook that it was going to invest a record $1,500 million in a company called AdSense to help it monetize its network of advertising platforms.
The new venture will fund the company’s “branding, design and development” and “advertising operations” for its online properties, including the advertising platform that will power the Facebook-owned Messenger.