Having fully invested its first China fund, Intel Capital announced Tuesday that it has set aside another $500 million to invest in Chinese startups.
China Technology Fund II will invest in wireless broadband, media, telecommunications and cleantech startups. Intel Capital said the new fund has already backed two startups: Holdfast Online Technology Co. Ltd., which makes a platform that enables gamers to compete against each other over a wide area network, and Newauto Video Technology Inc., which makes video equipment and network technology for Chinese TV stations.
The $200 million in Intel Capital's first China fund, which was established in 2005, has been invested into 28 companies, Intel said.
"Intel Capital expects to further increase our investment in China by pursuing business opportunities and participating in larger deals with an eye on leading rounds," said Cadol Cheung, managing director of Intel Capital Asia Pacific, in a statement. "As a stage-agnostic global technology investor, Intel Capital invests consistently across all economic landscapes and has a unique advantage in providing value-added benefits."
The new fund represents the geographical focus brought by Arvind Sodhani, who took over as president of Intel Corp.'s [INTC] venture arm in March 2005. Obviously, the world's largest corporate VC isn't backing off of the aggressiveness instilled by Sodhani, who has pushed Intel Capital to act as the lead investor in deals and make increasingly large investments, as evidenced by its backing of WiMax network provider Clearwire Corp. last year. --Olaf de Senerpont Domis
See April 8 press release from Intel Capital
See January 2007 story from The Deal
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