Intel Corporation is parting from another asset in the shake-up that the company has been undergoing 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 cryptography company StarkWare Industries. In the past, Intel Capital invested in Mellanox, which was sold to Nvidia, and in cybersecurity company Forescout Technologies, which was floated on Nasdaq. Intel Capital maintains a very active investment team in Israel that includes Roi Bar-Kat and former Uber Israel CEO Yoni Greifman.
According to Intel’s announcement, the fund will continue its activity under another name, and from the second half of this year will raise capital independently. Up until now, Intel Capital served as a corporate venture capital fund, with Intel Corporation as its sole limited partner. Intel will remain as an anchor investor, and the fund will continue its regular activity in the transition period. Intel says that the existing team will move as is to the new fund, but there is no assurance that the fund will succeed as a standalone entity, and its success in raising capital will dictate the future make-up of its staff.
Intel Capital was set up 24 years ago. It has raised $5 billion and invested in over 1,800 early-stage companies in cloud computing, semiconductors, and end-user devices. The spin-off could cause shocks at portfolio companies, where Intel Capital is an anchor investor and has representatives on the companies’ boards of directors.
Last week, Intel spun off its RealSense 3D depth camera division, which was based on its acquisition of several Israeli startups, and in which most of the employees are in Israel. And last year, Intel Corporation shut down its international Intel Ignite startup accelerator, which was run by an Israeli team. Over the past year, the company has also considered selling shares in Israeli assisted driving technologies company Mobileye and in chip manufacturer Altera.
Published by Globes, Israel business news - en.globes.co.il - on January 15, 2025.
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