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Intel Capital to Become Standalone Investment Fund

Daniel Nenni

Admin
Staff member
Intel will remain an investor in the new fund, which will bring Intel Capital’s corporate structure into alignment with other leading venture firms.

Intel Corporation plans to separate Intel Capital, its global venture capital arm, into a standalone fund -- a move that would bring Intel Capital’s corporate structure into alignment with other leading venture firms. (Credit: Intel Corporation)

Intel Corporation plans to separate Intel Capital, its global venture capital arm, into a standalone fund -- a move that would bring Intel Capital’s corporate structure into alignment with other leading venture firms. (Credit: Intel Corporation)

January 14, 2025 04:30 PM Eastern Standard Time
SANTA CLARA, Calif.--(BUSINESS WIRE)--Intel Corporation (“Intel”) today announced its intention to separate Intel Capital, its global venture capital arm, into a standalone fund. The new fund will bring Intel Capital’s corporate structure into alignment with other leading venture firms, enabling greater autonomy and the flexibility to attract external capital. Intel will remain an anchor investor in the new company.

“The separation of Intel Capital is a win-win scenario as it provides the fund with access to new sources of capital to expand its franchise while allowing both companies to continue benefiting from a productive long-term strategic partnership,” said David Zinsner, interim co-chief executive officer and chief financial officer of Intel. “This step supports our broader strategy to maximize the value of our assets while driving greater focus and efficiency across the business.”

Intel Capital, established in 1991, is one of the world’s leading corporate venture investors with over $5 billion in assets under management. For more than 30 years, Intel Capital has invested in over 1,800 companies and deployed more than $20 billion in capital. The firm has created over $170 billion in market value in the past 10 years alone by investing in early-stage startups across key areas shaping the future of compute: silicon, frontier, devices and cloud.

Standalone operations are expected to begin in the second half of 2025, at which time Intel Capital will operate under a new name. The existing Intel Capital team will move to the new company, and business operations will continue as normal throughout the transition.

Forward-Looking Statements
This press release contains forward-looking statements, including with respect to Intel’s intentions for its separation of Intel Capital into a standalone fund and the benefits thereof for Intel, that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including as a result of changed circumstances for Intel or Intel Capital that cause Intel to change its intentions, the ability of Intel Capital to operate independently and attract external capital, and other risks and uncertainties described in Intel’s 2023 Form 10-K and other filings with the SEC. All information in this statement reflects management's intentions and expectations as of the date of this statement, unless an earlier date is specified. We do not undertake, and expressly disclaim any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.

About Intel
Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com.

About Intel Capital
Over three decades, Intel Capital has invested more than $20 billion in the future of compute, funding standout, early-stage startups across four key areas of the tech ecosystem: silicon, frontier, devices and cloud. Intel Capital-funded companies created more than $170 billion in market value in the past 10 years. For more information, visit www.intelcapital.com or follow @Intelcapital.

© Intel Corporation. Intel, the Intel logo and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other names and brands may be claimed as the property of others.

Contacts​

Addy Burr
Intel
1-503-696-0088
addy.burr@intel.com
Jennifer Ard
Intel Capital
1-503-613-2833
jennifer.ard@intel.com
 
Probably a move to bring in more money... this will let them market and sell off a portion of the fund to other investors and reduce their own capital needs.

Intel Capital has made some really good investments - but then proceeded to tank the companies they acquire by trying to force them into becoming test beds/lead customers for fabs or for some other nascent technology Intel Corporate was trying to push.
 
I think this is a complete change of direction for Intel Capital. It used to be that Intel Capital existed to invest in start-ups which would support current or emerging adjacent technologies in Intel's ecosystem. That strategy is out the window with this spin-out. IC will probably be just another VC firm in the future.
 
I think this is a complete change of direction for Intel Capital. It used to be that Intel Capital existed to invest in start-ups which would support current or emerging adjacent technologies in Intel's ecosystem. That strategy is out the window with this spin-out. IC will probably be just another VC firm in the future.
If you are running out of money, you need to make hard choices
 
They are still the anchor investor. There is no fundamental change. What I wrote on Twitter:

I think it is intended for SOTP (Sum-of-the-Parts). Based on that measure, with the restructuring, the current price is significantly undervalued. Intel Capital + Altera, + Mobileye + etc, CHIP ACTs grants, 2 x foundry assets, then value rest of the businesses based on their revenues.

 
I did a podcast with them last August. Worth a listen:

I think this makes sense. That was during PG’s leadership, attacking on all fronts. I always wonder whether he has reflected on his management style. A normal business owner would not handle things this way. His explanation for not trimming the company from the beginning has aged poorly, especially given that we now know Meta will further reduce headcount. Meta demonstrated the importance of headcount reduction to its share performance several years ago.

I prefer the current approach: focusing on only a handful of manageable areas:
  1. 1. Supplying its own silicon with 18A.
  2. 2. Executing and simplifying its CPU roadmaps.
  3. 3. Establishing a foothold in the data center GPU market.
  4. 4. Restructuring other business units to be more competitive, align with their core values, and reduce expenses from Intel Corporate.
 
I'm not convinced. Why would other investors want to enable Intel's ecosystem?
From an accounting perspective, there isn’t much change in essence. Previously, Intel owned venture capital investments through its business units. Now, Intel owns these investments through an independent fund.

If AMD can establish market share without such initiatives, why can’t Intel achieve the same with less money? Intel needs competitive products such as Lunar Lake, Panther Lake, etc.

Additionally, I believe there is significant waste in how Intel operates. For example, Intel mentioned collaborating with 500 ISVs for their AI PCs. Yet, at the moment, Ollama, a software that serves as a front end for LLMs, cannot utilize Intel GPUs out of the box. Intel should focus its resources on key areas that directly benefit its products rather than spreading money across numerous projects.

Therefore, I see the separation as a positive move, as it aims to save money and allocate resources to areas that matter.
 

David Zinsner• Interim Co-CEO and CFO at Intel • 1 day ago

Today Intel Corporation shared plans to transition Intel Capital into a standalone fund. This move creates a win-win by unlocking new funding opportunities for Intel Capital’s growth, while maintaining a strong, long-term strategic partnership between the two companies. This is an example of Intel’s commitment to maximizing asset value, while driving greater focus and efficiency across the business.
 
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