When Intel Capital announced this The semiconductor giant is intended to exit Intel In January, it was a shock that the firm has been working as a venture investment arm of Intel since 1991.
In many ways, this decision indicates the end of an era about which some people are considered to be the first corporate venture capital firm. The firm was founded about 35 35 years ago and supports remarkable enterprise tech companies, including: about 2,000 others, docosin, peanut DB and hugs face.
But for Mark Rustak, Vice President and Senior Managing Director of Intel Capital, this transition represents a new opportunity for VC, while the firm allows to maintain many of its benefits as CVC.
A friend of Intel Capital recommended that he should try to get a job there. Rustic, who was not enjoying working as a tech licensing attorney at the time, lifted it on it. After meeting the team, he said he would do anything – even add the floors – to join it.
“You have to work with the smart people in the world,” Rustic told Tech Crunch. ” “The hardest thing to do in the business is nothing to start and it is to literally go to get the ground to leave the ground. They are the best people they are doing something special. [combined] With the hardest work in business with people, it was irreparable to me.
Rustic has been stuck for more than two decades and has seen the firm investing more than $ 20 billion in more than 1,800 companies, while more than 700 startup costs.
Rustak said that the idea of spinning from Intel Capital’s primary company was nothing new, and it was discussed several times in the past. This debate has always focused on how the firm will move forward, or get more, but also how much the firm will have to withdraw without a parent’s company.
But the conversation began to become more serious in early 2024 and the last fall was solid. He added that the head of Intel Capital, he and Anthony Lin, have been able to get comfortably in the idea of attacking the team themselves.
“We thought our track records have focused on foreign investors,” said Rostatic. “We really did good Done, Even, you know, much of the venture has not been unable to feel out of the industry, we have had some success in doing so, so we felt as if we could take ourselves as an outlet there.”
He added Star Lab to get out Last year, their time helped. Intel Capital initially supported Star Labs in 2018. The semiconductor company arrived in March 2024 with a price of $ 5.5 billion. A year later, the Austrian Labs has a $ 9.8 billion market cap, making it one of the most successful ventures of 2024.
Rustic said the success has also shown the potential LPS that Intel Capital is a firm that was making the right bet and was looking at the capital’s return at a time with very few venture -backed costs. According to, last year, US venture -backed costs were $ 149.2 billion Pitchbook dataWhich is significantly lower than the years like 2019, $ 312 billion, even when you exclude out -of -liter years like 2021, 1 841 billion.
It is not 100 % clear that everyone in Intel Capital was actually riding with this change. At the managing director level alone, the spin of negotiations have begun several departures, including: Mark Leiden, Arun Chetty, Sean Doll and Tami Samournsky, all of whom have been in the firm for more than 20 years, such as Originally reported Axios by Axios
A spokesman for Intel’s capital said the recent departures were not linked to the news of the firm.
The move also came at an interesting time for the firm’s parent company, which has arisen annual riots. Former CEO Pete Jillnagar suddenly retired on December 1 – he was talking to the firm. Reported. Has been the company since the company Ohio Chip had to delay the opening of the factory Once again and Its Falcon Shores decided not to bring AI Chip into the market. It also added Lipboo tan as her new CEO Who allegedly made changes to the company’s mind.
Regardless, the spin off continues.
Rustic said the firm is expected to be completely independent in the third quarter of 2025. He added that the newly nominated firm will be very similar to Intel Capital. The firm will keep Intel as an Achwar investor and will still invest in the same areas at the beginning of the initial phase: AI, cloud, devices and Frontier Tech, among others. Immediately after the formal spin out, the firm will submit the fund.
“We have made this idea social with people, and feel that we have received a great reaction,” said Rostat. “We’re not bid. We know this will be a difficult process.”
The success of this new solo firm to decide for the market. But in the meantime, despite everything, Rustic said the firm continues to work as a normal business.
“We are investing in new opportunities, actively looking for them,” said Rostat. “We maintain a portfolio with tears where it is capable of and is meaningful for everyone. And, you know, we go out of the portfolio as we always do. When we finish the switch, we keep moving at the same pace as we are playing today.”