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Cisco Joins Intel Capital as Nation’s Smartest Investors



Earlier, Intel Capital announced that the will put in $218.5M to buy a 2.5% stake of the VMware IPO for a mere $23/share. When I wrote about it, I speculated that Intel Capital should expect to get a 3-4x return on that investment over the next 5 years.

That's only an $800M+ gain for their investment. Not bad at all. This investment alone will put them in the "elite" category for venture investors. Well done!

Cisco announced that they will join the party. It appears as though they like to make easy money, too.

Cisco will put in $150M to buy about a 1.6% stake in VMware.

Also brilliant.

Anybody that gets in on the low end of the VMware IPO (currently $23-$25/share) will do very well. Congratulations to Intel Capital and Cisco for knowing how to invest wisely.

I’ve written about the VMware IPO previously here and here.

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  1. [...] VMware pre-sold over $368M of the proposed 10% to Intel Capital and Cisco (see these articles). [...]

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  2. [...] VMware pre-sold over $368M of the proposed 10% to Intel Capital and Cisco (see these articles). [...]

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