Intel Capital extends global reach
Jun 02, 2006
Making portfolio companies more successful around the world
Intel Capital, the venture capital investment arm of Intel Corporation, has embarked on a bolder, more proactive strategy designed to enhance innovation worldwide by helping its portfolio companies to be more successful through larger investment stakes and more active collaboration.
Recognizing the importance of technology centers outside the United States, Intel Capital over the past year announced the formation of a series of geographic investment funds in India (US $250 million) , China (US $200 million), the Middle East and Turkey (US $50 million), and most recently Brazil (US $50 million) in March. In 2005, Intel Capital invested over 60 percent of its US $265 million total in companies outside the United States.
Reflecting this global focus, earlier this week Intel Capital announced the first agreement by the Intel Capital Middle East and Turkey Fund with Orascom Telecom, a major Middle East telecommunications provider, to invest in Orascom Telecom WiMAX Limited. The investment focuses on identifying and developing new WiMAX opportunities throughout the region.
"The world has changed significantly since Intel Capital was first formed in 1991," said Arvind Sodhani, president of Intel Capital. "The hub of global technology innovation is no longer limited to Silicon Valley, but is found in start ups around the world. Intel Capital, as part of Intel Corporation, is poised to promote and support innovative technology start-ups and companies."
"Successful investments create more impact and benefit both for portfolio companies and Intel Capital," Sodhani added. "Look for Intel Capital to be more proactive in areas that it has traditionally stayed clear of, such as leading investment rounds, active board collaboration and taking larger investment stakes in portfolio companies."
To illustrate this proactive approach, since March 2005 Intel Capital has either led, co-led or been the sole investor in 54 deals - 46 percent of the total of all deals signed. The PIPEX Wireless investment announced last month is another example where Intel Capital formed a new joint venture in collaboration with PIPEX in the United Kingdom to promote WiMAX deployment. Intel Capital was the lead investor in PIPEX Wireless deal and is contributing both management expertise and active collaboration with the vast resources of Intel Corporation to help make this new company successful. Earlier this week, Intel Capital also announced further WiMAX investments in Worldmax, a joint venture with Enertel Holdings in the Netherlands, and the aforementioned Orascom Telecom WiMAX Ltd. that build on a foundation of previous WiMAX investments in Australia, Brazil, Mexico, Europe and the United States.
Through opportunities such as CEO Summit, Intel Capital's annual investment conference held this year in Mumbai, India, Intel Capital will continue to work with portfolio companies creating engines of innovation around the world. In addition, Intel Capital will use its relationships to stimulate innovation - via Intel Capital Technology Days, which consist of structured matchmaking with portfolio companies and leading industry executives, and direct collaboration with Intel Corporation's vast resources - across a broad range of technologies.