Apr 25, 2025 - Business

Intel reverses course on VC arm spinout

Dan Primack

Intel headquarters sign — Photo: David Paul Morris/Bloomberg via Getty Images

Intel has reversed its decision to spin out Intel Capital, one of Silicon Valley's oldest and most active corporate venture funds.

Why it matters: This feels like the beginning of the end for Intel Capital, which was founded in 1991 and has invested more than $20 billion in over 1,800 startups.

What they're saying: Comments from new Intel CEO Lip Bu-Tan, himself a former venture capitalist, suggest that a major secondary sale is coming.

"We have made the decision ... to work with the team to monetize our existing portfolio, while being more selective on new investments that support the strategy we need to get our balance sheet healthy and start the process of deleveraging," Tan said on an earnings call.

The bottom line: Team members must already be polishing résumés, after having been dangled the economics of an independent fund. Let alone with a much more restrictive balance sheet.

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Intel reverses course on VC arm spinout

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