Dell and EMC venture capital arms team up, merger to make USD 100 million annual corporate investments
Category: #world  By Saipriya Iyer  Date: 2017-05-10
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Dell and EMC venture capital arms team up, merger to make USD 100 million annual corporate investments

Dell Technologies, a result of one of the largest acquisitions in the technology world- Dell-EMC merger, announced its plans of collaborating the venture capital arms of its foundation companies- Dell Inc and EMC Corp. Allegedly, the company plans to make an investment of approximately USD 100 million annually in the start-ups. These start-ups will majorly comprise companies which Dell Technologies Inc might acquire in the due course or the firms which deal with data center network, cite the reports.

Dell Technologies Inc., is the world’s largest privately held technology company, a tag which has been acclaimed post the cash-and-stock acquisition of EMC Corp, a renowned data storage firm by Dell Inc, a computer technology magnate for a deal strike value of USD 67 billion. 

Prior to the deal, both the parent companies managed their corporate investments through their separate venture capital arms called EMC Ventures and Dell Ventures, both of which had different strategies and structures. For instance, EMC ventures, managed by Scott Darling, invested the sum from the one mentioned in its balance sheet whereas Dell Ventures, headed by Jim Lussier, invested capital specifically designed for strategic innovation ventures - USD 60 million for storage startups and approximately USD 300 million for later-stage startups. The investment focused on areas such as storage, mobile, and next-generation data-center technology.

Dell Technologies Capital, the collaboration of the predecessor companies’ capital divisions, will function along the EMC Ventures capital investment structure, making an investment between USD 3 million- USD 10 million (in the A and B rounds) out of the net USD 118.2 billion balance sheet of the parent company. The investment will primarily focus on early and late-stage startups. As per the reports, Dell Technologies Capital is headed by Scott Darling, who formerly led EMC Ventures.

Sources further claim the venture arm to be active having been in the “stealth” mode since past five years, when it made investments in companies such as Arista and Anobit. The idea behind publicizing these investments now is allegedly a strategy by Dell Technologies Capital to showcase the new venture and its accomplishments so far. Remaining out of the spotlight all these years further helped the company to gain an in-depth insight of the key technologies, thus providing the company with a competitive edge over its competitors such as Hewlett-Packard Capital. Both the rivals reportedly invested in Barefoot Networks, a computer networking company headquartered in Palo Alto, California.

The company disclosed its investment portfolio in around 70 startups in the past five years and aims to invest in at least 20 new startups this year. The investments will cover a wide spectrum of technology including artificial intelligence, data storage, analytics, and cloud computing.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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