Intel Capital, the corporate venturing unit of the eponymous US-listed chipmaker, has ended a review without making any secondaries sale of any of its portfolio companies but is undergoing a team reorganisation following the departure of vice-presidents Lisa Lambert and Marcos Battisti last week.
In a blog, Intel Capital: The Future in Focus, on the company website, Wendell Brooks, president of Intel Capital and senior vice-president of Intel in charge of mergers and acquisitions, said: “In February, I noted we were taking a fresh look at our portfolio to ensure we were best positioned to help our companies grow beyond just financial support.
“That process is wrapped up, and I am happy to report I inherited a terrific portfolio. The portfolio as a whole represents a broad-based and solid set of investments across many strategic and non-strategic sectors to Intel. This review has demonstrated to me the tremendous job the Intel Capital team has done in sourcing and supporting investments across technology sectors.
“Despite what you may have read or heard, we are not planning any major changes to Intel Capital’s portfolio. While, like all investors, we’ll continue to actively manage our investments, I intend to keep and support the portfolio I inherited. We aim to build upon our strong track record and generate successful outcomes for our portfolio companies.”
Brooks reconfirmed its plan to invest $300m to $500m per year and referenced three of its latest deals:
Intel Capital investments that will help “old economy” industries innovate, boost efficiency and save money: US-based Lumiata, which uses predictive analytics and artificial intelligence to help health insurers and doctors manage risk and coordinate patient care; Germany-based ProGlove, which makes smart gloves that use motion-detection sensors and built-in scanners to instantly capture data from factory workers – boosting speed, safety and quality; and US-based Maana, a high-speed analytics platform.
However, the team making its new deals and supporting portfolio companies is being changed. In his blog, Brooks said: “Intel Capital is also rethinking our team’s structure in order to streamline our investment process, give our startups more exposure to the breadth of Intel’s business units, and ensure we are servicing our portfolio in even more valuable ways long after we make the investment.
“As part of this process, some team members will be shifting roles, and a few may leave. While I hate to lose good people, some turnover and promotions for exceptional talent will be good for the organization. One thing that won’t change is our relentless search for new technologies and market opportunities.”
Earlier in the week, Brooks provided a quote regarding Lisa Lambert’s departure to be a managing partner at Westly Group “We congratulate Lisa on a terrific opportunity to focus on software investing, her first love. Lisa has completed a large volume of venture capital equity transactions during her tenure at Intel Capital with strong results. We wish her the very best in her new role and look forward to a relationship with Lisa at her new firm.”
The full blog post by Brooks:
As Intel Capital enters its 25th year, I want to share my thoughts about what we’ve been up to and where we’re headed.
Intel’s CEO Brian Krzanich wrote recently about our transformation to a virtuous cycle of growth between the data center and cloud and the billions of emerging smart, connected devices. This cycle will drive a society powered by data and data analytics. Given Intel Capital’s important pathfinding role for the company, we’re in the thick of this transformation.
I look back on the many innovative deals discussed in our investment committee, and I know the future will be exciting. As I’ve mentioned before, we have an unrivaled opportunity to bring entrepreneurs value beyond capital, through Intel’s vast global network of technologists, partners and customers. Intel Capital takes an active role in applying those assets to help entrepreneurs deliver disruptive new technologies to market.
Announcing New Investments
PitchBook just reported Intel Capital has led the venture industry in Internet of Things (IoT) investments by a wide margin. As we make these IoT investments, we are also staying focused on the analysis of the data these “things” generate. Data analytics is an important space, and I’m pleased to share several new Intel Capital investments that will help “old economy” industries innovate, boost efficiency and save money:
- Lumiata, based in Silicon Valley, uses predictive analytics and artificial intelligence to help health insurers and doctors manage risk and coordinate patient care.
- ProGlove, headquartered in Germany, makes smart gloves that use motion-detection sensors and built-in scanners to instantly capture data from factory workers – boosting speed, safety and quality.
- Maana splits its team between Silicon Valley and Bellevue, Wash. Its high-speed analytics platform organizes customer data normally locked away in silos into a “knowledge graph” that lets employees make smarter day-to-day decisions.
We look forward to helping Lumiata, ProGlove and Maana accelerate theirs route to market. As both an engineer and an investor, it’s incredibly energizing to help startups like these – not just with capital but, even more importantly, with access to Intel’s worldwide network and to Intel Capital’s industry-leading business development programs.
These new investments are just a few examples of what you’ll see going forward as we continue investing $300 million to $500 million per year. Whether we are backing data analytics or wearable technology companies, drone makers or enterprise security startups, these companies will all focus on technology’s future. Intel will help them make an important impact.
What’s Ahead
I am excited about the amazing agenda for the Intel Capital Global Summit in October. This is the best technology conference of its kind, bringing together hundreds of key industry leaders to connect with our portfolio companies. I look forward to a Summit where we focus on the difference leadership can make in emerging growth companies.
In February, I noted we were taking a fresh look at our portfolio to ensure we were best positioned to help our companies grow beyond just financial support. That process is wrapped up, and I am happy to report I inherited a terrific portfolio. The portfolio as a whole represents a broad-based and solid set of investments across many strategic and non-strategic sectors to Intel. This review has demonstrated to me the tremendous job the Intel Capital team has done in sourcing and supporting investments across technology sectors. Despite what you may have read or heard, we are not planning any major changes to Intel Capital’s portfolio. While, like all investors, we’ll continue to actively manage our investments, I intend to keep and support the portfolio I inherited. We aim to build upon our strong track record and generate successful outcomes for our portfolio companies.
Intel Capital is also rethinking our team’s structure in order to streamline our investment process, give our startups more exposure to the breadth of Intel’s business units, and ensure we are servicing our portfolio in even more valuable ways long after we make the investment. As part of this process, some team members will be shifting roles, and a few may leave. While I hate to lose good people, some turnover and promotions for exceptional talent will be good for the organization. One thing that won’t change is our relentless search for new technologies and market opportunities.
Keep watching this space as we continue making Intel Capital the technology industry’s lead investor of choice.