A public about-face always attracts attention—and that’s definitely the case with the curious saga of Intel Capital.

If you haven’t been following along: In January, Intel announced plans to spin off Intel Capital, its long-standing corporate venture arm. It wasn’t a Silicon Valley shock, but did signal the potential end of an era. The news came shortly after then-CEO Pat Gelsinger stepped down—reportedly pushed out—and during a leadership lull under interim co-CEOs David Zinsner and Michelle Johnston Holthaus.

Intel Capital—founded in 1991 by Intel legend Les Vadász—has long been a stalwart of the CVC world. Some of the firm’s exits over the years include VMware (after years in the public markets, now owned by Broadcom), Red Hat (acquired by IBM for $34 billion), and MongoDB (public since 2017). ICAP, as it’s sometimes colloquially called, currently counts among its portfolio companies AI players like SambaNova, AI21 Labs, and Twelve Labs.

Back in January, there was a sense that Intel Capital could make it on its own, retaining Intel as an investment partner while pursuing capital from new LPs. Fast-forward to last week: that plan was no more. On Intel’s Q1 earnings call, new CEO Lip-Bu Tan—who took over in March—reversed course.

“We have made the decision not to spin-off Intel Capital,” Tan told analysts, “but to work with the team to monetize our existing portfolio, while being more selective on new investments that support the strategy. We need to get our balance sheet healthy.”

Intel declined comment for this story, but we can read between the lines a little. Barring a deluge of imminent IPOs or M&A possibilities (the latter more likely than the former), Tan seems to gesture at secondary sales as a possible means of generating liquidity. Likewise, “being more selective on new investments” seems to signal a tighter investment focus that could amount to a pullback.

Tan’s desire to make this work isn’t surprising. A longtime VC himself—he founded Walden International in 1987 and, as recently as January, was reportedly raising a new fund—he’s unlikely to push aside an asset that could potentially be invaluable to Intel through the AI boom.

It’s not clear how far Intel Capital got in testing the market with LPs, but it seems highly likely the process had begun in some form. Regardless, the reversal is revealing—both about Intel and the broader venture landscape. LPs are increasingly choosy, wary in a difficult macroeconomic environment with a possible recession hanging in the balance. And for corporate venture firms, downturns can be telling.

“CVC mandates are put to the test during economic downturns,” said Patrick Eggen, Counterpart Ventures founding general partner, via email. “It separates corporates who are genuinely committed to the venture asset class from those who are ‘fair-weather’ tourist CVCs. The more savvy CVCs embrace their unfair advantages during bear markets…Most corporates have the luxury to act as patient capital allocators.”

Intel Capital holds rare distinctions. Historically, it’s been among the most active investors across the startup landscape, through up cycles and down. The firm has survived through its consistency, investing continuously amid economic fluctuations. And, of course, there’s the connection to Intel itself, one of venture capital’s first home run success stories. (In 1968, VC pioneer Arthur Rock backed Intel to the tune of $2.5 million.)

But times change. Intel has been in the midst of a public struggle, dropping market share for years to the likes of AMD and Nvidia—over the last five years, Intel’s stock is down more than 60%. It’s unclear what this all means for Intel Capital’s future.

It may not be the end of an era just yet. But it’s certainly a sign of where things stand.

See you tomorrow,

Allie Garfinkle
X: @agarfinks
Email: alexandra.garfinkle@fortune.com
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VENTURE DEALS

- Navro, a London-based international payment platform, raised $41 million in Series B funding. Jump Capital led the round and was joined by Bain Capital Ventures, Motive Partners, and Unusual Ventures.

- IXI, an Espoo, Finland-based autofocus glasses developer, raised $36.5 million in Series A funding. Plural led the round and was joined by Tesi, byFounders, Heartcore, existing investors Maki.vc, First Fellow, Amazon Alexa Fund, and others.

- Zoe, a New York City-based wealth platform for RIAs, raised $29.6 million in Series B funding. Sageview Capital led the round and was joined by CAPTRUST, Creative Planning, Mariner Wealth Advisors, and others.

- Blooming Health, a New York City-based technology platform for social care organizations, raised $26 million in Series A funding. Insight Partners led the round and was joined by existing investors Afore Capital, Crossbeam Venture Partners, and Metrodora Ventures.

- Growers Edge, a Johnston, Iowa-based financial products and tools provider for agricultural retailers, manufacturers, and lenders, raised $25 million in funding. S2G Investments, Cibus Capital, and Lowercarbon Capital led the round and were joined by Otter Creek, iSelect, and Jeff Ubben.

- Emmi AI, a Linz, Austria-based simulation technology developer for industrial engineering, raised €15 million ($17.1 million) in seed funding from 3VC, Speedinvest, and Serena.

- Queens Carbon, a Pine Brook, N.J.-based cement technology developer, raised $10 million in seed funding. Clean Energy Ventures led the round and was joined by Plug and Play, Clean Energy Venture Group, and Buzzi Unicem USA,

- Replenysh, a Costa Mesa, Calif.-based recycling solutions provider for businesses, raised $8 million in Series A funding. M13 led the round and was joined by Incite and existing investors Kindred Ventures and Floodgate Fund.

- TeamOhana, a San Francisco-based AI-powered headcount management software, raised $7.5 million in seed funding. Lerer Hippeau and Collide Capital led the round and were joined by Sierra Ventures and Recall Capital.

- GigSafe, an Austin-based compliance automation platform, raised $4.8 million in funding. Brand Foundry Ventures and Informed Ventures led the round and were joined by existing investor Rally Ventures.

- Buddy Bites, a Hong Kong-based dog food company, raised $1 million in seed funding from Leap Venture Studio and others.

PRIVATE EQUITY

- Mainsail Partners invested $26 million in ChiroHD, an Atlanta-based practice management system for chiropractors.

- Apex Capital acquired a majority stake in Juanita’s Foods, a Wilmington, Calif.-based Mexican food products company. Financial terms were not disclosed.

- Fox Innovation & Technologies, backed by Bluewater, acquired Sirio Solutions Engineering, a Prato, Italy-based engineered control systems provider. Financial terms were not disclosed.

- NOVA Infrastructure acquired a majority stake in DartPoints, a Dallas-based data center solutions provider. Financial terms were not disclosed.

- PAX Services Group, a portfolio company of New State Capital Partners, acquired Culbertson Company of Virginia, a Manassas, Va.-based commercial restoration, roofing, and masonry services provider. Financial terms were not disclosed.

- Sky Peak Capital acquired TriStar Plastics, a Shrewsbury, Mass.-based engineered plastic solutions provider. Financial terms were not disclosed.

- TA Associates acquired a minority stake in Kline Hill Partners, a Greenwich, Conn.-based private equity secondaries firm. Financial terms were not disclosed.

EXITS

- Kohlberg acquired a majority stake in RESA Power, a Houston-based power systems and solutions provider, from Investcorp. Financial terms were not disclosed.

OTHER

- Earnix agreed to acquire Zelros, a New York City-based generative AI platform for insurers and banks. Financial terms were not disclosed.

- Silvaco acquired Tech-X, a Boulder-based multi-physics simulation software provider. Financial terms were not disclosed.

- Vector Solutions acquired Frontline Public Safety Solutions, a Lockport, Ill.-based cloud platforms provider for public safety agencies. Financial terms were not disclosed.

IPOS

- Aspen Insurance Holdings, a Hamilton, Bermuda-based provider of property and casualty insurance and reinsurance, plans to raise $341 million in an offering of 11 million shares (100% secondary) priced between $29 and $31 on the NYSE. The company posted $3.3 billion in revenue for the year ending Dec. 31, 2024. Highlands Bermuda Holdco backs the company.

- American Integrity Insurance Group, a Tampa-based residential property insurance provider, plans to raise $117.3 million in an offering of 6.9 million shares (9% secondary) priced between $15 and $17 on the NYSE. The company posted $204 million in revenue for the year ending Dec. 31, 2024. Sowell Investments Holding Co. backs the company.

FUNDS + FUNDS OF FUNDS

- FPV Ventures, a San Francisco-based venture capital firm, raised $525 million for its second fund focused on mission-driven founders.

- Escalate Capital Partners, an Austin-based investment firm, raised $350 million for its fifth fund focused on technology, software, services, and healthcare.

PEOPLE

- Escalate Capital Partners, an Austin-based investment firm, promoted Travis Wood to partner and Larry Bradshaw to chief operating officer and chief financial officer.

Intel’s spin off reversal puts Intel Capital at a crossroads