Intel Capital made an impressive 146 investments in 2013, 63 of which were new, totalling $333m, and 49% of the investments were made outside North America. Intel Capital also exited 33 companies in 2013, six of which through initial public offerings (IPOs) and 27 through mergers and acquisitions.
The exits included V-cube, a Japan-based video conferencing company that raised $43m in December 2013 in a Tokyo IPO. V-cube became Intel Capital’s sixth portfolio company to list in 2013.
The unit made another big splash in March, brokering a $740m investment to back US-based software company Cloudera, named our Investment of the Year. Intel took an 18% stake in the big data analysis software company.
The corporate venturing unit has broadened its investment sectors to focus on data centre software, wearables and new devices, security services, and ultrabook and perceptual computing.
In March 2014, for example, Intel’s $100m acquisition of strategic target company Basis Science, a US-based developer of wearable health devices grabbed attention. Intel Capital had previously participated in the company’s October 2013 $23.3m series B round.
While Kleiner Perkins Caufield & Byers and Andreessen Horowitz are the most active investors in the cybersecurity space, Intel Capital has also been busy investing, and has overseen the highest number of exits in the sector, according to CB Insights research.
Intel Capital has recorded the highest number of cybersecurity exits among investors since the start of 2012. This is a natural fit with Intel’s 2011 acquisition of cybersecurity software provider McAfee. Among Intel Capital’s recent cyber-security exits are data security firm Credant Technologies, acquired by Dellm, and Solera Networks, acquired by Blue Coat Systems.
Intel Capital has also stepped into in the 3D printing sector, where it invested an undisclosed amount in two companies: Lithuania-based CGTrader, which runs a 3D computer graphics model marketplace, and US-based MakeXYZ, which connects people to 3D printers in their neighbourhood.
Arvind Sodhani, president of Intel Capital and executive vice-president of Intel Corporation, said: “3D printing is changing the way individuals and businesses give life to ideas. We are seeing the impact of this technology on numerous industries, including manufacturing, medical, retail and consumable goods, among others. CGTrader and MakeXYZ will drive the development of the ecosystem.”
Intel Capital continues to look outside its US base for long-term mass sales opportunities. An example of this is the recently announced $100m Intel Capital China Smart Device Innovation Fund. The capital has been earmarked to accelerate Intel technology-based devices through innovation of tablets, smartphones, PCs, 2-in-1’s, wearables, the internet of things, and other related technologies in China. The fund will be supported by the new Intel Smart Device Innovation Centre in Shenzhen.
Intel as a corporation has been at the forefront of the digital age for decades and is still investing in some of the next best things. Chief executive Brian Krzanich told analysts on a recent conference call that Intel shipped 5 million tablet chips in the first quarter and is on track to reach a goal of shipping 40 million this year.
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