Intel Capital's investment activities slowed down this year due to current economic uncertainties.
The lackluster initial public offering (IPO) market and unfavorable factors within certain sectors have resulted in cautious investment sentiment, said Intel Capital's China Head Xu Shengyuan during the Intel Capital Global Summit in the U.S., according to Sina News.
At the same time, as there is a huge gap between the buyers and sellers on the prices of tech companies, the over-valuation of these companies will take some time to even itself out before investment activities pick up again, Xu noted.
While tech companies are priced higher these days, which is reminiscent of the situation during the Silicon Valley bubble in 2000, the executive said the market remains healthy and Intel Capital will not rush to invest or exit the market.
He added the investment firm, which is fully funded by chipmaker Intel, will not focus on short-term performances but will aid in its parent company's longer-term development strategy. One possible focus is the Chinese market which remains promising in the foreseeable future, he said.
As an example of its long-term vision, Xu recounted how Intel Capital invested US$3 million in Smart Technologies--a digital whiteboard producer--in 1992, and earned US$800 million after the company's 2010 IPO. The investment cycle for this particular deal was up to 18 years, which is unlikely to be matched by other venture capital firms, he said.
Intel Capital this week announced US$40 million worth of investments in IT companies globally, among which five are from Asia.