Intel starts $500 million China investment fund

Intel Corp.’s venture capital arm announced that it has set up a new $500 million fund to invest in Chinese technology startups. The new fund, Intel Capital China Technology II, will invest in Chinese companies involved in wireless broadband, technology, media, telecommunications and environmentally friendly technologies. Intel Capital President Arvind Sodhani said the company’s second China fund plans to invest its US$500 million over five to seven years. The company set up in June 2005 its first fund targeting China, the $200 million Intel Capital China Technology Fund. That fund was meant to spend its allotment over the same period as the new fund but ended up spending all its capital in less than three years.