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Intel Capital looks to emerging markets

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IDF: San Francisco – Intel Capital, which spent more than $1-billion in venture capital projects last year, has invested more than $500-million so far this year – including $218,5-million in VMWare which, with its recent record IPO, must rank as one of its shrewdest investments since its formation in the mid-1980s.

Arvind Sodhani, president of Intel Capital, also revealed that 60% of the organisation's investments are in companies outside of the US.
"Intel Capital was set up in the mid-1980s with the intention of promoting the development of technology outside of Intel as we came to realise that not all R&D could be done inside Intel," Sodhani says. "Currently, our model consists of investing in companies that are strategic in nature to our long-term technology needs and desires, as well as being financially sound and viable, successful companies.
"We also have internal projects whereby we will set up employees in incubator companies if they're working on ideas that we think are viable," he adds.
"Intel Capital is one of the largest investment organisations in the world and very significant amounts of money have been invested throughout the life of the organisation."
Sodhani says that a major focus for Intel Capital is emerging markets, particularly China and India.
"This is our vision for the future – worldwide growth with an emphasis on emerging markets," Sodhani says. "As we invest in various parts of the world, so technology is deployed. With this technology deployment, so the penetration of computers increases, which is all very valuable to Intel Corporation."
And, he adds, the organisation is constantly on the lookout for new companies to invest in.
"We want to get more deals and deploy more dollars," Sodhani says. "Our goal is to be the pre-eminent global investment company in the world."