Intel Capital Invests in China's Innovation

Filed in archive Venture Capital on June 30, 2006

Intel Corp.'s venture-capital arm sees greater innovation among the companies it examines for investment in China. According to the Street.com, Intel Capital has announced four new investments from its $200 million Technology Fund.

The companies receiving investments are Campus Media Inc., Montage Technology Co. Ltd., Star Softcomm Pte Ltd. and Winking Entertainment Limited. Intel Capital has now invested in 12 Chinese companies since its US$200 million China Technology Fund was first established in June 2005. These latest investments, together with earlier announced funding in more than 50 Chinese start-ups and companies, are intended to foster Chinese innovation in cellular communications, broadband deployment, software applications and semiconductor design.

In an interview with CVN, Mr. Cadol Cheung, managing director, Intel Capital Asia Pacific responded to the following questions about their investments.

CVN: Your $200 million China Fund is impressive. With 12 investments made
over the past year, what has been the average size of those investments
and what key industries are you targeting?

Cadol Cheung: As these are private companies, we are not disclosing the terms of each investment. However, in general, Intel Capital typically invests in
the range of US$1 - US$5 million - although investments can be either
larger or smaller depending on the nature of a specific opportunity. Our
investments are intended to help foster Chinese innovation in hardware,
software and services in technology space.

CVN: What is the primary challenge in making a venture investment in a
Chinese tech company in 2006?

Cadol Cheung: With the present level of interest in China, valuations are rising.
However, as a long-standing investor in China - Intel Capital has been in
China since 1998 - we're well-positioned to continue our track record
of sound investment that meets both our strategic and financial criteria.
We're also well-regarded by entrepreneurs, who recognize the unique
value-add provided by Intel Capital, which can in include company-building,
technology validation and "matchmaking" with potential customers
or business partners around the world.

CVN and: What can you tell me about your recent investment into Campus Media. What makes this ad network compelling?

Cadol Cheung: Campus Media provides an interesting opportunity for Intel marketing campaigns to target hard-to-reach university students across China.
(Editor's note. Campus Media operates an advertising network in university cafeterias across China.)