Intel Capital, which is Intel's global investment arm, has unveiled the new Intel Capital Diversity Fund worth $125 million that will be dedicated to fuel startup companies led by women and minorities.
Brian Krzanich, the CEO of Intel, noted that the program has been in development since December of last year. He added that Intel has undergone some changes in how it does things in terms of diversity, with the company more than doubling the number of diverse employees hired this year so far.
Intel Capital managing director Lisa Lambert, however, was quick to clarify that the program is not a social program or a charity. The fund will provide an opportunity to women and minorities that are ready to lead a startup but simply have not been able to get the chance to do so.
"What we're convinced of is, as you seek out diverse points of view, you're going to produce better returns. All the studies show that," Lambert said.
Intel Capital has invested a total of $50 billion across over 1,400 companies located in 57 countries. The Intel arm's reach is massive, but the company is looking to make that reach more diverse.
Lambert, however, pointed out that there is still a major lack of diversity in many technology companies of today, both small and large ones. Lambert revealed certain statistics showing the lack of diversity, including the fact that only 15 percent of the venture capital-funded companies in the country have a woman on its executive team and less than one percent of startups in Silicon Valley were founded by Latino or African American entrepreneurs.
"The industry, as a whole, has some improvement to make," said Lambert.
Among the initial startup companies that Intel Capital selected to receive support from the Intel Capital Diversity Fund are Brit + Co., an e-commerce company led by CEO Brit Morin that features a workforce of over 80 percent women, and CareCloud, a healthcare technology startup with a workforce made up of 56 percent women and 50 percent minorities.
The fund will also make investments in cybersecurity company Venafi and smart cup manufacturer Mark One.
Krzanich reiterated the goal of Intel to have a full representation in every level of the company for women and minorities by the year 2020. And in addition to the new fund, Krzanich also noted other efforts by the company on increasing diversity, such as an amount of $1 billion that will be dedicated to diverse suppliers.
