February 16, 2016
As we have been following tech companies in their FinTech endeavors, another tech mammoth has come onto the radar with attempts to squeeze into FinTech and leverage opportunities. Google and Microsoft are certainly more aggressive with their FinTech investments, but Intel is also actively looking to take advantage of the FinTech wave.
Even though Intel’s FinTech portfolio may be smaller than Google’s, the company made a large number of investments outside of the US, including companies like iZettle (Sweden), UUCun (China), Fortunmo (Estonia) and Elike (Brazil).
While Google is looking for diversity in investments, Intel is more focused on cloud and software investments. Interestingly, Intel is very active outside the US – half of its investments are made beyond North America.
Image source: Intel Capital
Intel Capital has provided a map of its global investments portfolio. It is clear from the map that the investment efforts are mostly concentrated in North America, Europe and Asia. Africa and Latin America seem to be of the least interest to Intel. However, as FinTech is expected to bloom in the future, Intel may pay more attention to the region.
Overall, there are 310 companies in Intel Capital’s portfolio. About 50% of companies Intel has invested in are outside North America with 15% of the investments in the Asia-Pacific region. The second biggest investments market is China – 13% of Intel's investments portfolio.
Out of 310 companies Intel Capital has invested in, 157 are from the US. Even though it is a large number of investments in the country, Intel is clearly looking to expand its international footprint across segments.
Latin America is of the least interest in terms of investments as only 5% of companies Intel Capital has invested in are in the region.
The most important and curious fact about Intel Capital investments is that the fund is very active in the Asian region. More than a quarter of all investments done by Intel Capital are in Asia.
If we look at Intel's investments portfolio by segments, Software is the biggest segment with 21% of its companies operating in the segment. The next one Intel is particularly interested in is Internet & Digital Media – 18% of the companies.
While tech companies like Samsung are getting actively involved in Wearables, Intel doesn’t seem to be rushing to invest in the segment. Only 5% of the companies Intel has invested in are working with Wearables. When it comes to IoT, Intel seems to have an even lesser interest in it so far (4%).
Intel Capital has some of the most notable FinTech players in the investments portfolio. Among those companies are Founders Club, ItzCash, CashStar and other companies.
Intel has a notable initiative that many may not be aware of – the Diversity Fund. Intel’s Diversity Fund is the largest venture capital fund ever created to focus on female and underrepresented minority entrepreneurs. This $125 million, part of Intel's diversity efforts, is to ensure that funded entrepreneurs enjoy the access to business development programs, a global network, technology expertise and brand capital their talents deserve.