The fund will focus primarily on companies seeking seed funding and early stage funding, and Google Ventures will have the ability to make investments ranging from tens of thousands to "several tens of millions" of dollars, Maris said.
http://www.wired.com/techbiz/media/news/2009/03/reuters_us_g...
Sounds like competition to me. But it may also bring new opportunities for YC start-ups to be bought.