Intel is parting ways with another asset in the company’s shake-up over the past year, as its management seeks to focus on its core business. The chip company is spinning off its venture capital arm Intel Capital, which is active in Israel, where its portfolio includes Amnon Shashua’s artificial intelligence company AI21 Labs and crypto company StarkWare Industries. In the past, Intel Capital has invested in Mellanox, which was sold to Nvidia, and in cybersecurity company Forescout Technologies, which went public on the Nasdaq. Intel Capital maintains a very active investment team in Israel that includes Roy Bar-Kat and former Uber Israel CEO Yoni Griffman.
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According to Intel’s announcement, the fund will continue its activity under another name, and from the second half of this year it will raise capital independently. Until now, Intel Capital has been a corporate venture capital fund, with Intel as its only limited partner. Intel will remain as a lead investor, and the fund will continue its regular activity during the transition period. Intel says the existing team will move over to the new fund, but there is no guarantee the fund will succeed as an independent entity, and its success in raising capital will dictate the future makeup of its staff.
Intel Capital was founded 24 years ago. It has raised $5 billion and invested in more than 1,800 early-stage companies in cloud computing, semiconductors, and end-user devices. This disconnect could cause shocks to portfolio companies, where Intel Capital is a major investor and has representatives on the companies’ boards.
Last week, Intel spun off its RealSense 3D depth camera division, which was based on its acquisition of several Israeli startups, most of whose employees are based in Israel. Last year, Intel shut down its international startup accelerator program, Intel Ignite, which was run by an Israeli team. Over the past year, the company has also considered selling shares in Israeli computer-assisted driving technology company Mobileye and in chip maker Altera.
Published by Globes, Israel Business News – en.globes.co.il – on January 15, 2025.
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