Bucks for broadband businesses

THERE`S GOOD NEWS for would-be entrepreneurs with a broadband-related business plan.

Launched in January, Intel Capital SA is on the lookout for potential investments in this country. According to Ashish Patel, MD of Intel Capital EMEA, the company is looking to further broadband and software development in SA.

Intel Capital is an international investment group launched in 1991. It has invested more than $7.5 billion in about - 000 companies in 45 countries.

Sam Mensah, director of Intel Capital SA, says the company is busy forming networks and analysing companies to find the right ones to invest in locally. He says: "We`ve got funds and we`re looking for deals. We`ve got companies in mind, and we`ve started talks. There is a variety of proposals on my desk."

INNOVATIVE SA

Patel says Intel Capital SA is "trying to create a culture of entrepreneurship in technology in SA," because, he says, SA is a country with innovative ideas.

Mensah agrees, noting that SA "has pockets of innovation, and resources like good research facilities in universities."

He cites some successful local tech companies, like Thawte and Dimension Data, as examples of the potential in SA for technological advancement. "These are good omens for SA companies."

Patel explains that SA was chosen as the next step for Intel Capital because of the potential. "SA has a fast-growing middle class" and an increasing tech consumption. He says SA is growing quickly and such growth and potential is difficult to find in the developed, more industrialised nations.

SA STRATEGY

The two key focus areas of Intel Capital SA are affordable wireless broadband and market enabling software. Patel explains the goal of better broadband does not only apply to SA, but the rest of Africa as well. While Intel Capital`s focus right now is SA specifically, the company is still interested in innovation from Africa. Mensah says, "We are being pro-active in South Africa and reactive in the rest of Africa."

GETTING NOTICED

Patel says companies are usually brought to the attention of Intel Capital through the company`s business networks. "The local networks get us in touch with entrepreneurs," he explains.

Another way companies come to the attention of Intel Capital is by word of mouth. Companies benefiting from investment tell their fellow entrepreneurs, who seek out Intel Capital.

Patel also explains that Intel Capital is not just for entrepreneurs and start-ups. "There are even instances where businesses don`t need the capital, but want to partner with Intel for the benefits that our know-how and network can bring."

He also says that it is not unlikely that Intel may partner with bigger companies, as they know the emerging market well.

Patel says, to him, success will mean he can look back in five years and say that Intel Capital has made many black empowered investments, facilitated affordable wireless broadband and dramatically improved penetration and helped kick off SA`s technology economy.