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Intel Capital Ups Asian Investments
Looks like Intel's venture funding arm, Intel Capital, is looking more to Asia to juice up its portfolio of investments than ever before. Touting its know-how to empower global connections and business growth, the MPU giant is showing signs of increasing investments in China and Japan as the world economies begin to bounce back from the 2009 recession Since 1991, Intel Capital has invested more than $9 billion in over 1,000 companies in 46 countries. In that timeframe, 174 portfolio companies have gone public on various exchanges around the world and 231 were acquired or participated in a merger. In 2008, Intel Capital invested about $1.59 billion in 169 investments with approximately 62% of funds (excluding Clearwire) invested outside North America. Intel's venture arm has invested over $500 million in more than 80 technology companies across mainland China and Hong Kong. During the past four years, Intel Capital has created two dedicated China investment funds totaling over $700 million. With two billion dollars under management in the Intel Capital fund, it appears that the company is looking to step up its investments in Japan in 2010. The aim will be to target those startups which can help Intel increase MPU sales. Technologies which Intel is looking to invest in are believed to include 3-D video and cinema technology, energy-efficient appliances, rechargeable batteries and semiconductor production equipment. Intel Capital has spent more than $330 million buying stakes in Japanese companies including Nikon since it began funding firms in Japan in 2000. In 2009, Intel invested about $55 million in three companies: Onkyo, a maker of home theater systems, V- Cube, a developer of Web-based videoconferencing systems, and UQ Communications, a provider of nationwide WiMax wireless broadband services. At the 10th annual Intel Capital conference held in November 2009, the company announced seven new investments spanning three continents and totaling approximately $25 million; 10 new follow-on deals were also announced. The new investments, almost all led by Intel Capital, included U.S.-based Joyent (cloud computing) and Active Storage (RAID storage systems for Apple users), Korea-based Crucialtec (optical modulation technology), Taiwan-based Gudeng Precision Industrial Co (semiconductor front-end equipment manufacturing), Japan-based V-cube (Web-based videoconferencing systems), China-based Phoenix New Media (Web information portal) and United Arab Emirates-based NeuString (telco pricing analytics software). The follow-on deals included Argentina-based Vostu (social gaming), Israel-based Safend (endpoint security provider), China-based China Digital Video Limited (video equipment and network solution provider), U.S.- and China-based Verisilicon Holdings (design foundry), U.K.-based picoChip (baseband silicon for 3G femtocells and WiMAX infrastructure), India-based Financial Information Network & Operations Pvt. Ltd. (biometric smartcard enabled banking solutions), India-based Wortal, Inc (local entertainment events portal, Buzzintown.com) and U.S.-based Sendmail (messaging infrastructure provider) and Zend Technologies (PHP Company). Intel Capital also recently announced a $50 million investment in Clearwire. |