Intel Capital calls off $1BN portfolio sale
Since joining the venture capital game in 1991, Intel has backed more than 1,400 startups across 57 countries and an even bigger number of segments, from software-as-a-service to healthcare automation. And according to a new blog post from the head of its investment arm, Wendell Brooks, the company plans to continue at full-throttle despite the global economic issues that have caused other funds to scale back spending.
The memo quashes speculation that Intel Capital might divest from companies that fall outside the company’s core focus areas, notably data center infrastructure, memory and the connected universe. According to the Bloomberg report that started the rumor-mill in March, Brooks’ unit was looking to sell as much as a quarter of its investment portfolio for around $1 billion. The anonymous insiders who leaked the news revealed the company even hired a bank to help find buyers. They said that the portfolio could be sold either as a whole, or in chunks carved out based on sector and geography.
But while Intel Capital’s existing lineup apparently won’t experience any major changes, Brooks’ blog post didn’t say anything about future investments. As a matter of fact, it provides strong reason to believe that the company might modify the unit’s funding strategy to better reflect its new focus areas. The executive revealed that several of his colleagues are set to change roles or leave the division as part of an effort to “streamline” its investment efforts.
For the time being, however, business seems to be continuing as usual. Brooks published his blog post a few hours after Intel Capital was named as the lead contributor to a $20 million investment in Lightbend Inc., a development automation specalist. The startup’s open-source application promises to ease the creation of high-performance cloud workloads that require the ability to deal with sudden usage spikes.
Image via Pixabay
Since you’re here …
… We’d like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we don’t have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams at theCUBE — take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.
If you like the reporting, video interviews and other ad-free content here, please take a moment to check out a sample of the video content supported by our sponsors, tweet your support, and keep coming back to SiliconANGLE.