Intel Spurs $3.5 Billion Alliance For Technology Innovation, IT Jobs
Chip giant joins 24 venture capital firms investing in key innovation and growth sectors. Additional 17 tech companies pledge to step up IT hiring.
Intel Corp. said that its Intel Capital global investment arm will join 24 venture capital firms to collectively invest some $3.5 billion in U.S. technology companies over the next two years, $200 million of which will be aimed at key innovation and growth segments such as clean technology, information technology and biotechnology.
Intel chief executive Paul Otellini introduced the plan in a speech delivered at the Brookings Institute in Washington, D.C. earlier this week.
We simply must have a clear, consistent strategy to promote innovation, investment and start-up companies, Otellini said. There are things business can do, and ought to do, independent of what government achieves.
Participating companies are calling the two-pronged plan the Invest in America Alliance, the goal of which is to make long-term investments in industries and people to advance technology innovation, fund start ups and create new IT jobs.
Tied to the initiative is the pledge of an additional 17 technology companies, mostly industry stalwarts, to as much as double their hiring rate in 2010 of recent college graduates, resulting in an estimated 10,500 new jobs in engineering, computer science, financial analysis, marketing, management consulting and sales.
Officials said that the effort represents the private sectors complement to government sponsored job creation programs.
Venture capital investments have played an important role in creating jobs at home and keeping America at the leading edge of technology globally, said Arvind Sodhani, president, Intel Capital.
Initiative to create new jobs in emerging markets
The $3.5 billion contribution is expected to create jobs not only in current market segments but also in emerging sectors such as molecular diagnostics, bioinformatics, electric vehicle ecosystem and wireless infrastructure, Intel said.
It would be a long-term mistake to let our future scientists and engineers sit idle after graduation, Otellini said.
Companies vowing to boost hiring in 2010 include Accenture, Adobe Systems Inc., Autodesk, Broadcom Corp., CDW LLC., Cisco Systems Inc., Dell Computer Inc., eBay Inc., EMC Corp., General Electric, Google Inc., Hewlett-Packard Co., Liberty Mutual Group, Marvell Semiconductor Inc., Microsoft Corp. and Yahoo!.
Venture capital firms involved in the endeavor include Advanced Technology Ventures, Braemar Energy Ventures, Bridgescale Partners, Canaan Partners, DCM, Draper Fisher Jurvetson, Flywheel Ventures, Good Energies, Institutional Venture Partners, Investcorp Technology Partners, Khosla Ventures, Kleiner Perkins Caufield & Byers, Menlo Ventures, Mohr Davidow Ventures, New Enterprise Associates, North Bridge Venture Partners, QuestMark Partners, Sevin Rosen Funds, Storm Ventures, Telesoft Partners, Updata Partners, U.S. Venture Partners, Venrock and Walden International.
Intel said that other venture capital firms are expected to join the alliance either with additional funding or hiring goals.
The effort is not without some history and precedent behind it. Intel said that in the past two decades it has put up more than $6 billion in 1,350 investments in U.S.-based businesses. It also pointed out that in 2008 venture capital-backed companies provided more than 12 million jobs in the U.S., or 11 percent of overall private sector employment.
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