Speaking of Intel, the first thought is certainly its CPU processor, there are all kinds of chips, technology, but you know what? Intel is actually a hidden venture capitalist. In fact, Intel is one of the world’s three most active venture capitalists, the other two, Alphabet and SaleForce.
Intel was also one of the first to enter the VENTURE ring: intel founded Intel Capital in 1991 to focus on outbound investment, and has invested more than $12 billion in more than 1,500 companies, about 700 of which have been successfully listed or acquired.
The long list includes names such as Broadcom/AVGO, VMware/VMW, Citrix Systems/CTXS, Cloudera (CLDR), DocuSign (DOCU), Marvell Technologies/R, MonDB(MDB), Red Hat.
Intel Capital’s key investment areas include artificial intelligence, autonomous driving, enterprise software and cybersecurity, semiconductors and storage, the Internet of Things and robotics, 5G, cloud computing, and so on, with the goal of “earn and learning”.
Intel has never disclosed a return on investment, but says it has “generated billions of dollars in cash for Intel.”
Compared to traditional financial venture capital funds, corporate ventures are usually very conservative, tend to play a supporting role, led by venture capital funds, invest edgy, invest, but Intel Capital is quite aggressive, active, last year three-quarters of the investment is led, and usually requireboard seats on the board.
Unlike traditional VC funds, Intel has no outside investors, and its investments are all derived from the profits of the parent company.
Intel Capital typically invests between $300 million and $500 million a year, but does not have a cap, and in some cases has exceeded $1 billion.
In the most recent data-available year of 2018, Intel Capital invested a total of $391 million, including 38 new investments and 51 additional investments, of which four companies were successfully listed and 14 were acquired.