Intel to invest $30M in four U.S. startups

9/14/2010 11:49 PM EDT

It looks like Intel is expanding their horizons with these purchases. I wonder how these companies fit into the big Intel picture? Can anyone comment on these companies and how they might fit into the Intel family? I am happy to see investment occurring in the technology company sectors, but curious about these particular choices. It is an interesting mix of companies.

9/15/2010 1:37 AM EDT

In a related story ( "http://www.eetimes.com/electronics-news/4191613/Intel-Capital-boosts-Chinese-venture-fund" ), we find that last year Intel Capital invested about $639 million, 37 percent of which was being spent outside the U.S. Since 1991, Intel Capital has invested more than $7.5 billion in about 1,000 companies across more than 45 countries.

So I would say that Intel capital does what any major venture capital company does, e.g. invest $$ in hopes of $$$$$$$$ financial return. Should any of those investments fit some Intel strategic purpose, that would also influence the investment as well as any exit strategy of the company that was invested in.

Furthermore, making such investments should also give Intel a "first look" at other companies that approach Intel Capital. IC cannot know all possible investment opportunities, so investing widely only opens the field wider for them.

A better question would be...,.what Intel Capital investments (or % of them) have been directly utilized by Intel Corporation in their daily business?

9/15/2010 4:53 AM EDT

My sense of it is, somebody like Intel maintains an Eagle's eye view and a few dollars(few 100 millions) at whatever is happening around their industry which probably they did never thought of and want to keep a pulse about. This could be their additional cash, if it works fine they make 1000 out of it and also keep entrants under their hood so that ultimately they rule the roost. Supremos probably function like this.

9/15/2010 6:42 AM EDT

I guess this is driven by necessity rather anything else. Companies have to innovate and take such investment decisions else it would be tough for them to survive in this competitive world. I am not saying Intel is a weak contender here but comeon nobody thought Nokia would loose smart phone market. So spending some bucks and trying their hands on some new technology makes sense.

9/15/2010 6:44 AM EDT

I guess this is driven by necessity rather anything else. Companies have to innovate and take such investment decisions else it would be tough for them to survive in this competitive world. I am not saying Intel is a weak contender here but comeon nobody thought Nokia would loose smart phone market. So spending some bucks and trying their hands on some new technology makes sense.

9/15/2010 9:24 AM EDT

That's a veried set of technologies, not forgetting the mcafe venture. They are certainly looking for opportunities outside their traditional business. It is necessary to adapt fast enough inorder to stay ahead in some ways.

9/16/2010 5:39 PM EDT

I guess, I have to side with heramb and dspSurfGuy on what Intel’s intentions are. In my view, it is more of a political move than anything else. Intel appear to be geared more towards maintaining their technology leadership a few decades into the future than a move made out of present necessity.

Ofcourse, cashing in big on any successful start-up is certainly an added benefit in the process; I agree. However, I feel, that these (expected) VC profits would be rolled in more towards straightening their VC arm. Therefore, I believe, it is less of a profit making strategy on Intel’s standpoint. Compared to the profits that Intel can generate by establishing another technical team or by opening new division/branch overseas, I do not think VC profits count a great deal towards their profit earning goals.

In a day where the innovative ideas and knowledge make the difference, Intel plans to make sure that many bright ideas that didn’t occur to Intel-engineers, are still allowed to grow under Intel umbrella. Later, when these start-ups make it big, can any one of you guess who will be in the best position to sort of gulp them whole?

Most, smart engineers and innovators, who present their ideas to VCs, tend to underestimate the power these VCs get to wield over them and their ideas in the years to come. Driven by ambition and excitement, the unmatched power-bargain that they jump into is overlooked by many an innovator seeking VC funds. There may be exceptions, however, in majority of the cases VCs own the board, with it the company and its value-idea.

In short, in order to improve its future political manoeuvrability, Intel is buying the potent ideas in the present with the people who are best equipped to implement them and who are best motivated to incubate them with passion. Later, if when the ideas make them into the marketplace it is far more difficult succeed in a hostile take-over bid, isn't it?

9/19/2010 4:56 AM EDT

The global technology is expanding and a technology company Intel is making right investments mostly at right times. These investments are on back,middle to front end technologies. This way Intel will be able to give the best solution for sophisticated applications on the earth and space now and in future.