Intel Corporation has announced plans to spin off its venture capital arm, Intel Capital, into an independent entity. Established in 1991, Intel Capital was unique at its inception as a venture arm of a large corporation. The move to establish it as a standalone firm is expected to be completed in the second half of 2025. This strategic decision will allow Intel Capital, which currently holds $5 billion in assets, to raise funds from outside investors for the first time.
In Tuesday’s announcement, the company said Intel Capital’s workforce would continue with the investment firm when it becomes independent in the second half of 2025. A representative declined to comment on specific executives’ plans. Intel Capital, until now fully funded by Intel, has been instrumental in investing in various startups and companies. Among its notable investments is Mobileye, an Israel-based leader in self-driving technology, where Intel Capital holds a majority stake.
Restructuring of Intel’s Other Subsidiaries
In addition to spinning off Intel Capital, Intel is also undergoing a similar restructuring with Altera. Altera, specializing in simple chips known as FPGAs, is expected to become a publicly traded company. These moves reflect Intel’s broader strategy to focus on its core business operations while allowing successful subsidiaries and investment arms to pursue growth independently.
Trend of Corporate Venture Arms Spinning Off
Intel Capital’s evolution into an independent entity is part of a broader trend within the tech industry. Other companies, such as SAP and Google, have previously spun off their venture arms to better capitalize on market opportunities and expand their investment horizons. This comes in the wake of a peak in corporate venture capital activities in 2021, when firms collectively raised $156 billion and participated in nearly 3,800 deals.
What The Author Thinks
Intel’s decision to spin off Intel Capital reflects a growing shift in the tech industry toward allowing successful subsidiaries to grow independently. This move could allow Intel Capital to raise additional funds from outside investors, while enabling Intel to focus more on its core operations. By following in the footsteps of companies like SAP and Google, Intel is positioning itself to tap into a broader range of market opportunities. This could be a significant turning point, not just for Intel, but for the wider tech sector, as more companies look to empower their venture arms to operate with greater autonomy and flexibility.
