New Fund Expands Dell Fluid Data Storage Fund to $300 Million and Re-focuses Investment Scope
Dell Ventures, Dell’s strategic investment arm, on Monday announced a new $300 million venture fund that will invest in tech companies, including early-to-growth-stage security startups.
The “Strategic Innovation Venture Fund” is Dell’s second major investment fund and builds on the $60 million Dell Fluid Data Storage Fund announced last year.
The new fund expands Dell’s financial commitment 400% and expands the scope of investment opportunities beyond storage to companies in other core technology areas, including security, storage, networking, cloud, big data, mobility and software.
“On average, we invest from $2-15 million into a round with the normal investment averaging $3-5 million,” a Dell spokesperson told SecurityWeek. “The amount will vary from company to company and based on partner commitments; we have flexibility if we see an opportunity.”
“The Dell Ventures model is to co-invest with venture capitalists and other strategic investors, acting as a board advisor and making the full breadth of Dell resources available to the portfolio company,” Dell explained in a statement. “These resources include technical and business counsel, as well as access to brand scale, OEM solutions, channel and go-to-market relationships.”
In addition to equipping startups with resources through Dell Ventures, Dell said it provides entrepreneurs with access to technology, financing, networks and knowledge to help turn an idea into a successful business through the Dell Center for Entrepreneurs.
Spearheaded by Dell’s entrepreneur-in-residence, Ingrid Vanderveldt, and offering a number of core initiatives designed to cater to the needs of growing businesses, the Center for Entrepreneurs recently expanded into the UK and will launch in additional markets in 2014, Dell said.
Along with announcing its new $300 million venture fund, Dell Ventures announced its participation in a $16 million investment in security startup Invincea.
“The expansion of our venture investing will allow us to stay at the forefront of innovation for our customers, and support the entrepreneurs who are helping shape the future of IT,” said Brian Gladden, Dell Chief Financial Officer.
In September, Dell shareholders approved a proposal led by company founder Michael Dell to take the technology company private.
“In taking Dell private, we plan to go back to our roots” of entrepreneurialism, Michael Dell said on a conference call in September. “We stand on the cusp of the next technological revolution. The forces of cloud, big data, mobile and security are changing the way people live, businesses operate and the world works, just as the PC did almost 30 years ago.”