Pre-Alphabet, Google investors were already exposed to all of the company's non-core businesses. The reorganization is designed to provide shareholders with a cleaner, more transparent structure while giving Google the ability to more easily operate its various businesses independently. If one of Alphabet's independent companies takes off, the structure could also make it easier for it to engage in transactions that reward Alphabet shareholders.

When you invest in a new venture fund, you're not buying anything at book value. You're providing capital and trusting that the folks who are going to deploy it will be able to achieve a return consistent with your goals. Most funds charge an annual fee of 2% of assets under management and investors are locked in for at least 10 years, so there's no free lunch. Given that the multiples in the private market today are even more pronounced than in the public markets, investors in venture funds are effectively paying significant premiums too.

Bottom line: if you like the core Google business and want some exposure to the craziest ideas in Silicon Valley, Alphabet might be attractive. It's definitely not comparable to a venture fund but still might be as close as your average retail investor will ever come to a Bay Area venture fund. Who knows, it could become the next-gen Idealab if Larry and Sergey have their way.