Intel prepares to jettison venture capital arm

Troubled semiconductor company Intel Corp. has announced that Intel Capital, its venture capital arm, will become a stand-alone company in the second half of 2025.

Intel will remain an investor in what will become an independent investment company that is expected to attract external capital, Intel said. At present Intel Capital has more than US$5 billion in assets under management.

Intel Capital was established in 1991, the beginning of a period when Intel dominated the semiconductor landscape and was looking for places to send excess capital. Over the subsequent 33 years Intel Capital has invested in more than 1,800 companies and deployed more than US$20 billion in capital investing in early-stage startups across semiconductors, software and computing.

Over the last ten years the more successful of Intel Capital’s investments have gone on to create more than $170 billion in market capitalization.

During a period between 2000 and 2015 when broader venture capital interest swung away from hardware and towards software and services Intel Capital was one of a limited number of VCs that continued to invest in hardware-based startups.

“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, interim co-chief executive officer and chief financial officer of Intel. “This step supports our broader strategy to maximize the value of our assets while driving greater focus and efficiency across the business.”