Interesting read between the lines for sure. Google Ventures is mostly a separate entity from Google and most of their VC investment has been for firms that are "web based" or at least generate most of their revenue from applications used on the web.

$17M isn't that "big" of a stake. If my intuition is correct, the funds are for development of an "arm" of OnDeck that most likely has to to with conducting business over the net. Google Ventures makes it's returns from the performance of the business and not fixed returns. At least I think so unless I'm out out to lunch.

The mention of paypal in the article does point towards OnDeck going in the direction of capturing businesses that operate mostly with paypal or google checkout. I could be wrong but there are some definite clues for sure. And it wouldn't surprise me of course.