Intel to Spin Off $5B AUM Venture Capital Business

Intel is restructuring its global venture capital arm into a standalone investment fund, in a move expected to provide “greater autonomy and flexibility to attract external capital” for the firms.

Intel Capital will become an independent company following a transition process in the second quarter where it will take on a new name but retain its existing team and business operations. Intel will remain an anchor investor in the new fund, which would allow both companies to “continue benefiting from a productive long-term strategic partnership” through a spinoff that would “maximize the value of assets while driving greater focus and efficiency across the business,” according to Intel CFO and co-CEO David Zinsner.

Intel Capital has deployed over $20B in capital investments across approximately 1,800 portfolio companies in the past 30 years, with $170B in market value generated in the last decade from its investments in early-stage tech startups. To date, the venture arm manages more than $5B in total AUM.