Google Ventures is coming to Europe, according to Bill Marris, managing partner at the VC arm of Google. The search giant has set its sights on London's Clerkenwell area - a stone's throw from Old Street's Silicon Roundabout - for its headquarters.

The five-year old entity will receive initial funding of $100 million (about £67 million, AU$ 110 milion) to support the next generation of European entrepreneurs.

Explaining the rationale behind the decision, Marris said that Google believed the continent's startup scene had "enormous potential".

Sizzling startups

Initial partners will include Tom Hulme, Peter Read, Avid Larizadeh and Eze VIdra as well as respected tech blogger and TechCrunch alumni, MG Siegler.

Google Ventures has proven to be a low-key investment for Google but an all-important tool to identify (and sometimes acquire) red hot startups.

Among the better names companies it has invested in are Nest Labs (which it acquired earlier this year), Uber, RetailMeNot and Hubspot.