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Replacing it's Internal VC Unit are it's individual business units, whom are now responsible for outside funding. Last year, the venture capital arm of the world's biggest maker of personal computers invested close to $500 million dollars in 60 startups that make technologies useful to the mother company.
Just last month Compaq sold it's Alpha processor unit to Intel, who is not going to implement Alpha processors of their own, but instead use the technology in Intel chips as well as modify Compaq specific software to run on the new Intel 64-bit Itanium Chip.
"The market is a bit difficult. There are not so many opportunities," said Compaq spokesman Steve Siebert. He said department heads will now make investment decisions based on whether a target company's product is useful to their department's projects. Previously, investment decisions were made by department heads and Bud Enright, Compaq's head of corporate development.
It is likely that like many VC's, Compaq lost a lot of money in investments the last year.
Compaq will also closely look at existing investments "to see if it makes sense" to continue to supporting portfolio companies. Siebert would not say if any startups have been closed down.
Related AMO Articles:
AOL Time Warner gets Compaq desktop space.
Compaq sells Alpha Processor Unit to Intel.
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