Intel Capital Israel, the venture investment arm of Intel (Nasdaq:INTC), has invested a total of $25 million to $30 million in twenty Israeli startups in 2001, substantially lower than the $50 million invested in 2000, TheMarker has learned.
The sharp decrease stems mainly from deteriorating valuations of hi-tech firms in their financing rounds last year, the result of the dropping value of the technology sector on global capital markets.
Intel Capital is considered the biggest foreign VC investor in Israel, having invested about $120 million in 50 local technology companies. In 2001 Intel took part in financing rounds held by Sanctum (formerly Perfecto Technologies), CashU, Gilian Technologies, WanWall, Bluesoft and Jungo.
Intel Capital does business as a department within Intel, not as a separate VC fund. Its seed investments are of up to $800,000, with up to $3 million to $5 million in second and third rounds, maintaining 5-10% stakes in portfolio companies.