Google (NSDQ: GOOG) has done a number of strategic investments over the years, and usually big amounts in big-issue-tackling companies, like powerline internet, WiMax, and others. It even has a non-profit Google.org foundation to invest in global challenges. Now it wants to start a formal venture capital arm, a la Intel (NSDQ: INTC) Capital, Time Warner (NYSE: TWX) Investment, Steamboat (Disney’s (NYSE: DIS) venture arm) or BlueRun Ventures (formerly part of Nokia), reports WSJ, citing sources. The group will be lead by David Drummond, Google’s SVP of corp dev, chief legal officer, and it has also hired William Maris, a 33-year-old former entrepreneur who has worked as an investor, to help set up the venture.

What’s Google’s advantage over other VC funds? Well, technical expertise, reach and distribution, and then in-built tools for monetization of services and products for these startups. This new venture could help institutionalize some of Google’s previous investments, and maybe even look at some new/allied areas of expansion and investment.