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Intel Capital: Private Equity in the IaaS sector


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Integral service around a transaction
BY : Diego GutiérrezFebruary Mon, 2020

The risk in Private Equity is high and, therefore, the number of them that are finally carried out is not too high.

Infrastructure as a service, IaaSis a form of cloud computing that provides virtualised computing resources over the internet.

However, according to a study by Baker Tilly, IaaS is one of the sectors where most of them are carried out.

HOW DOES THE SECTOR WORK? IaaS?

In an IaaS model, a cloud provider hosts the infrastructure components traditionally present in an on-premises data centre, including servers, storage and network hardware.

The IaaS provider also provides a range of services to accompany these infrastructure components.

Well-known examples of this market include Amazon Web Services y Microsoft Azure.

BENEFITS IaaS

Increasingly successful, such platforms have a number of benefits:

  • Eliminates capital expenditure and reduces ongoing cost.
  • Improves business continuity and recovery from potential "disasters" or "mishaps".
  • Innovate quickly.
  • Rapid response to commercial changes in business.
  • Concentration on core business.
  • Increased stability, reliability and compatibility.

PRIVATE EQUITY

The IaaS sector receives large amounts of money, typically in excess of €100M, in investments in companies with high growth potential.

They do so in exchange for control of a percentage of the company or its shares, although they typically buy 100% of a company.

One of the most active players in private equity is the division Intel Capital.

Below, we will detail some of its most relevant aspects.

GETTING TO KNOW INTEL CAPITAL

Founded in 1991, Intel Capital, a strategic investment, the Corporate Venture capital from Intel Corporation.

It supports innovative technology companies and, in addition to investing in technology start-ups, it also invests in companies offering software, hardware, mobility and digital media, among others.

YOUR ACTIVITY

Since its inception, Intel Capital has invested $12.4 billion in 1,544 companies around the world.

In addition, 670 portfolio companies have been taken public or acquired.

TOP EXITS IN THE SECTOR IaaS

VIRTUSTREAM

Virtustream provides cloud computing software and management infrastructure as a service to businesses and governments.

TIER 3

Tier 3 unleashes business agility through enterprise-class cloud software and services, putting global companies on the path to IT-as-a-Service..

Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?

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