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The separation will allow the corporate venture investor to attract external capital, said Intel.
Intel Capital, the global venture capital arm of Intel, has announced that it will separate from its parent company Intel into a standalone fund.
The move will give Intel Capital “greater autonomy and flexibility” to attract external capital, said Intel, who will remain a key investor in the newly formed company.
The new company will begin standalone operations starting mid 2025 under a new name, with the existing Intel Capital team moving over to the new business.
Established in 1991, Intel Capital is one of the leading corporate venture investors, having invested in more than 1,800 companies and deployed more than $20bn in capital. Moreover, according to the firm, it has created more than $170bn in market value in the last decade alone.
“The separation of Intel Capital is a win-win scenario as it provides the fund with access to new sources of capital to expand its franchise while allowing both companies to continue benefiting from a productive long-term strategic partnership,” said David Zinsner, the interim co-chief executive officer and chief financial officer of Intel.
“This step supports our broader strategy to maximise the value of our assets while driving greater focus and efficiency across the business.”
The company’s managing partner Anthony Lin, in a letter addressed to Intel Capital’s portfolio companies, said: “Today is the start of an exciting new chapter.”
Reiterating the points made in Intel’s announcement, Lin said: “We are confident that this change in structure will unlock significant opportunities for our portfolio companies,” adding that the autonomy and flexibility to raise new capital will “create an even more robust and geographically diverse ecosystem of resources, expertise and market access to accelerate your growth”.
In 2024, Intel Capital was part of a massive $675m Series B funding round backing Figure AI, a start-up focused on humanoid robotics. The funding round also saw support from tech juggernauts such as Microsoft, OpenAI, Nvidia and Jeff Bezos. While in 2023, the fund supported Israeli generative AI start-up AI21 Labs’s Series C funding round which raised a total of nearly $340m.
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