Intel Pours $30 Million into Four U.S. Technology Companies

Vendor draws on $200 million investment fund and $3.5 billion joint initiative to back technology companies in intelligent automation software, electronic design automation, cloud computing, and intelligent grid software.

September 16, 2010

D.H. Kass

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Intel Corp. said that its Intel Capital investment arm has invested some $30 million in four technology startups, tapping into a $200 million fund it established last February to prod economic development in selected growth areas.

“A culture of investment is essential to keeping the U.S. on the leading edge of technology innovation and stimulating economic activity,” said Arvind Sodhani, Intel Capital president and Intel executive vice president.

The chip maker said that it has provided financial backing to Adaptive Computing Enterprises Inc., Ciranova Inc., Joyent Inc. and Nexant Inc.

Adaptive is a privately-held, Provo, UT-based provider of intelligent automation software for data center, cloud computing and high-performance computing. The company’s flagship product, Moab Adaptive Computing Suite, improves server utilization, reduces energy consumption, improves SLA delivery and resource accountability, aligns resources in real time and improves business continuity.

Ciranova, a privately-held electronic design automation company based in Santa Clara, CA, said it will use the Intel Capital funding to expand its sales and customer support operations and for specific extensions to its technology.

The company’s software helps engineers implement mixed analog-digital integrated circuits in advanced semiconductor processes. Its products allow engineers to quickly integrate premium functions such as WiFi, Bluetooth and WiMAX into their chips.

Ciranova’s other investors include Alloy Ventures, AsiaTech Management, U.S. Venture Partners, Synopsys Inc. and Mentor Graphics.

Joyent, in operation since 2004, is a privately-held, San Francisco, CA-based Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) provider.

While Intel did not disclose the individual amounts it invested in each company Joyent revealed that it had secured a total of $15 million in Series C funding led by Intel Capital, Greycroft Partners and Liberty Global. Intel previously financed Joyent’s Series B funding.

Joyent said it will use the funding to expand internationally and build market demand for its core cloud computing technologies.

“This infusion will enable Joyent to continue expansion of our Smart Technologies for cloud computing, including our SmartPlatform open source project and node.js support, to extend our product offerings and customer base,” said David Young, Joyent chief executive and founder.

Nexant Inc. is a privately-held provider of intelligent grid software and clean energy solutions based in San Francisco, CA.

Company officials said that the Intel Capital infusion will be used to expand its software and services presence in IT and data center efficiency.

Nexant, which has been in operation since 2000, maintains 24 corporate, representative, and project offices in the U.S, EMEA and Asia. Its investors include Energy Software and Consulting, The Beacon Group, Morgan Stanley Global Energy Group, Frog and Peach Investors, Nth Power, MC Capital, and IBM Corp.

Intel Capital investments part of larger initiative

In February, Intel Capital revealed plans to 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.

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.

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.

TAGS: cloud computing,Intel,technology,investment,Intel Capital

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