If Intel Capital decides to invest, it generally manages the investment
through the Intel business unit most relevant to the technology concerned,
not through Intel Capital. In some cases, though, when financial
issues facing the venture are of paramount concern, Intel Capital’s own
managers play a more active role in managing these relationships. Regardless
of who fills that role, Intel revisits the IPA criteria of every company
in its portfolio on a quarterly basis to assess the deal’s postinvestment
performance. “There’s an old saying at Intel, I think it comes from
Andy [Grove, Intel’s former CEO and current chairman],” related Vadasz.
“‘Anything that you measure will get better.’”21 Each quarterly review
incorporates both trend and snapshot indicators to analyze how well the
deal meets Intel’s strategic objectives. “You need a ‘forcing function’ to
make the relationship happen,” stressed Steven Nachtsheim, Intel Capital
vice president and director. “Managing the relationship does not mean
making it work. It also can mean deciding that it’s time to cut bait when it
no longer makes sense. It’s not a marriage.”