Intel Corporation (NASDAQ:INTC)’s Venture Arm Shares Secret On Startup Investment

Where does Intel Corporation (NASDAQ:INTC)’s success come from? In a rare disclosure, it is emerging that startup investments help fuel Intel’s success and it is a strategy that the company intends to keep employing in the foreseeable future. When it comes to investing in startups, Intel’s venture arm, Intel Capital, is rigorously selective.

Last year, Intel Corporation (NASDAQ:INTC) poured $500 million in startup investments and the trend is expected to continue this year.

Investing early

Intel’s venture division recently disclosed some of the strategies that have worked for it in startup investment. It turns out that the firm prefers to get into promising startups early, when valuations are low and the company can help accelerate development of the promising technologies.

Israeli startups

Intel Corporation (NASDAQ:INTC)’s venture funds are increasingly going East – to Israel startups to be precise. According to Intel Capital managing director, Marcos Battisti, Israel is far much ahead of even Europe when it comes to technology innovation. Intel is finding more compelling technologies in Israel and the company is not missing a beat. The company has invested in 75 Israeli startups over the last 16 years and it looks set to continue the trend.

Sckipio Technologies, a developer of the chips, is one of the Israeli startups that Intel has recently invested in. The other recent Intel investment in Israel is Stratoscale, a developer of virtual computing technologies. The type of solutions that Stratoscale develops enables almost anyone to get into the cloud business and rapidly scale regardless of their size.

Cautious approach

Intel Corporation (NASDAQ:INTC)’s venture arm no doubt registered 2015 as one of its most successful years in startup investment. However, the landscape in startup venture market is rapidly shifting. There appears to be more venture money targeting startups, especially from Chinese billionaires seeking safer investment away from home where the economy is cooling. The influx of startup venture capital means that startup valuations have skyrocketed, causing Intel Capital to be more caution in its startup ventures.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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