“The $45.5 million invested last year is about 2.3 times the total amount invested in 1999, which was $19.5 million,” Caine reported. “Currently, we have 24 companies in our portfolio.”
Intel Capital — which focuses on making equity investments and acquisitions to grow the Internet economy, including Internet infrastructure, content and services in support of Intel’s strategic interests — maintains two specialized funds: the Intel 64 Fund, focused on developing the infrastructure around the 64-bit processor, and the Intel Communications Fund. Together the funds are capitalized at more than $750 million, although Nachtsheim says this is flexible.
“We have made acquisitions in the billions of dollars,” he said, “including one in Israel, of DSP Communications.”
Intel Capital has dramatically expanded its non-U.S. investing over the past three years, to the point where it reached 32 percent of total international investment last year. “Most of this growth occurred in the Asia/Pacific region and in Europe and Israel,” Nachtsheim said. “We grew from one person to more than 100 people in Intel Capital outside the United States. And I expect investment outside the US to constitute 40 percent of the global total in 2001.”
“I am excited about Israel’s ability to provide strategic investment opportunities in the future,” Nachtsheim said. “Israel is a good place to invest because it has a high level of education, a solid entrepreneurial spirit, and a developed venture capital community.”