Intel Capital backs three Chinese tech start-ups
Intel Capital, the captive VC arm of Intel Corporation, has backed in three Chinese start-ups as part of a $72 million investment in 12 companies based in China and the US.
The new Chinese portfolio companies – microchip manufacturer Espressif, enterprise cloud software developer Alauda, and artificial intelligence (AI) specialist Reconova – were announced at Intel Capital’s global summit. Individual commitments have not been disclosed. The transactions bring Intel Capital’s total commitments to date for 2018 to $115 million.
Beijing Singularity Power Investment Fund, an investment vehicle backed by China’s BOE Technology Group, National IC Industry Investment Fund, and Yizhuang SDIC, also participated in the funding round for Expressif. The company develops computer processors that power speech recognition and AI applications in robotics, networking, and connected devices. It has also built a proprietary operating system for the microchips.
Defense and aerospace investment firm Enlightenment Capital and an unnamed strategic investor joined Intel Capital in the Alauda deal. This is the second financing round in the last six months for the company, which creates tools for cloud software developers. Its previous funding round in November was led by Tencent Holdings, with participation by Broadband Capital and Banyan Fund.
Reconova will use Intel Capital’s investment, which it is referring to as an extension of its Series B round that closed in November, to create visual perception software for AI developers. The company’s products are mainly aimed at AI implementations for traditional industries such as home appliances, which must overcome limited power and steep costs when integrating smart technology.
The new investments reflect an ongoing shift on the part of Intel Capital, and Intel's broader organization overall, to focus on data-centric applications. According to Intel Capital CEO Wendell Brooks (pictured), the share of Intel's revenue from data storage and processing grew from 30% in 2013 to 46% as of last year. Intel Capital has duly focused on areas such as autonomous vehicles and AI, as well as on companies that can find innovative ways to process or store large amounts of information.
Intel Capital claims to have invested $12.3 billion in over 1,530 companies worldwide since 1991. Of these, 660 have since gone public or been acquired. Last year represented a new high in terms of exits, with 26 realizations through M&A and 10 through IPOs. The latter category includes Singapore-based gaming peripherals maker Razer, Chinese-Indian connected device designer Borqs, and Indian telecommunications equipment maker Tejas Networks.
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