Intel Capital, which launched in 1991 and has invested $9.5bn of equity for minority stakes in technology companies, has beaten Google Ventures into second place of most influential corporate venturing units that inaggregate manage more than $20bn, according to analysis by Global Corporate Venturing.
Arvind Sodhani, president of Intel Capital, said: "Building the ecosystem to help entrepreneurs establish and grow a new business requires investment capital and expertise. As a strategic investor, Intel Capital is uniquely positioned to provide the capital, global reach, worldwide customer access and recognised brand to help drive lasting technological innovation. Intel Capital is committed to the corporate venturing approach because this is an effective way to develop new businesses and technologies, create new industries and establish new markets."
The analysis by Global Corporate Venturing also revealed the scars of the previous wave of new entrants has started to heal from the losses sustained after the dot.com boom ended. A host of new entrants, particularly from Asia but also including US-listed search group Google’s in-house venturing division, have emerged at better times in the economic cycle with revised stratuctures to look for strategic as well as financial returns.
Technology firms particularly caught by the 2001 downturn having set up corporate venturing units just before the millennium have often evolved their strategies to tap into external innovation through partnerships with independent venture capital firms or other connections. The $1.5bn EDS-AT Kearney Ventures fund launched in December 2009 was subsequently closed and the management consultancy bought itself out from its technology services peer a few years later.
David Asper, partner at AT Kearney and its global team leader for the firm’s financial institutions group and chair of the firm’s Growth Fund having co-managed the 1999-vintage vehicle, by email said: "The EDS – AT Kearney Ventures fund was conducted some time ago (~ 2002-03), and the AT Kearney partners have concluded an MBO [management buyout] in early 2006, taking the firm back out of EDS and running it now as a privately-held firm. While we have a very significant PE [private equity] consulting practice, we do not have any in-house venture capital or PE activities."
EDS declined to comment.