HP Launches Group to Invest in Startups
10 May 2016 - 11:29PM
Dow Jones News
By Don Clark
HP Inc., a descendant of Silicon Valley's original startup,
plans to bet on the next generation of entrepreneurs.
The company, made up of the personal computer and printer
operations of the former Hewlett-Packard Co., on Tuesday announced
the launch of HP Tech Ventures, an investment arm targeting
early-stage companies developing technologies that could help its
business.
HP's announcement was mainly a formality. The investment group,
which already was operating quietly, grew out of activities begun
before the Hewlett-Packard breakup completed in early November,
said Shane Wall, HP's chief technology officer. It has already made
a handful of investments.
The group will target fields such as 3-D printing, virtual
reality, artificial intelligence, wearable technology and the trend
called the Internet of Things, Mr. Wall said.
"What we have been focusing on is investments that help us
accelerate a current business, or help us accelerate disruptions
that are now in the lab," he said.
Such corporate investment activity is nothing new. The
best-known example in Silicon Valley is Intel Corp.'s venture
capital arm, which has taken equity stakes in more than 1,400
companies since 1991. (Intel, which recently announced a major
restructuring, is considering selling part of its venture capital
portfolio, a person familiar with the matter said in March).
Mr. Wall joined HP three years ago after a lengthy stint at
Intel, where he worked for a time at Intel Capital. Like the chip
giant, he said, HP plans to invest with funds from its balance
sheet rather than setting aside money in a traditional investment
fund.
"We want to put the focus on investments that are critical," Mr.
Wall said, as opposed to hitting "some dollar amount."
The investment group will have teams in Palo Alto, Calif.--HP's
hometown -- as well as in Tel Aviv. Israel is home to some major HP
operations, as well as a major center for startups and venture
capital, Mr. Wall said.
HP Tech Ventures will be led by Andrew Bolwell, an HP executive
who holds the title "chief disrupter." Mr. Bolwell will report to
Mr. Wall.
Hewlett Packard Enterprise is the other portion of the venture
that Bill Hewlett and Dave Packard established in a Palo Alto
garage in 1939. That company, known for products such as server and
storage systems, has a separate investment arm called Hewlett
Packard Ventures.
Write to Don Clark at don.clark@wsj.com
(END) Dow Jones Newswires
May 10, 2016 09:14 ET (13:14 GMT)
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