Key Takeaways
- • Intel's $2.3 billion acquisition of Israeli quantum computing software startup Classiq is expected to yield $80 million to $100 million each for co-founders Nir Minerbi, Amir Naveh and Prof. Yehuda Naveh, according to CTech.
- • Entrée Capital, which led Classiq's pre-seed round after investing just a few million dollars, is expected to collect more than $300 million from the deal.
- • Team8 Capital holds a 9% stake worth roughly $207 million at the headline valuation, while The Phoenix's 7.5% stake is valued at about $172.5 million.
- • Classiq has raised approximately $200 million since its 2020 founding, and its employees collectively hold about 10% of the company, a stake valued near $230 million.
- • Consideration is a mix of cash and Intel shares, so final proceeds depend on deal terms and Intel's share price movements.
Summary
Intel's $2.3 billion acquisition of Classiq, an Israeli company that develops software for designing and running quantum algorithms across different hardware platforms, is set to generate substantial returns for its founders and early investors, according to CTech. The three co-founders, CEO Nir Minerbi, CPO Amir Naveh and CTO Prof. Yehuda Naveh, are each expected to receive between $80 million and $100 million. Minerbi and Amir Naveh are graduates of the Israel Defense Forces' Talpiot program, and Yehuda Naveh previously held a senior position at IBM's Israeli development center.
The deal is structured as a combination of cash and Intel shares and values the six-year-old company well above its most recent private funding valuation. Classiq has raised approximately $200 million since its founding in 2020. The company employs around 150 people, and employees collectively hold roughly 10% of the company, a stake worth about $230 million at the acquisition price. Intel has also allocated more than $100 million in retention grants to keep staff in place.
Venture investors are among the largest beneficiaries. Entrée Capital, which led Classiq's pre-seed round and continued investing in later rounds, is expected to collect more than $300 million. Team8 Capital, the second-largest shareholder with a 9% stake, would see that holding worth about $207 million at the headline valuation. The Phoenix, the Israeli insurance and financial services group holding a 7.5% stake, would receive roughly $172.5 million, meaning institutional savings products also stand to benefit.
Other investors include NightDragon, led by former McAfee chief executive Dave DeWalt, Norwest, Wing Venture Capital, HSBC, Samsung Next and QBeat, as well as strategic backers AMD Ventures, Qualcomm Ventures and IonQ. Individual proceeds will depend on each holder's stake and the final transaction structure. The headline valuation should not be confused with immediate cash proceeds, since the Intel share component remains exposed to movements in Intel's stock price.
The deal is structured as a combination of cash and Intel shares and values the six-year-old company well above its most recent private funding valuation. Classiq has raised approximately $200 million since its founding in 2020. The company employs around 150 people, and employees collectively hold roughly 10% of the company, a stake worth about $230 million at the acquisition price. Intel has also allocated more than $100 million in retention grants to keep staff in place.
Venture investors are among the largest beneficiaries. Entrée Capital, which led Classiq's pre-seed round and continued investing in later rounds, is expected to collect more than $300 million. Team8 Capital, the second-largest shareholder with a 9% stake, would see that holding worth about $207 million at the headline valuation. The Phoenix, the Israeli insurance and financial services group holding a 7.5% stake, would receive roughly $172.5 million, meaning institutional savings products also stand to benefit.
Other investors include NightDragon, led by former McAfee chief executive Dave DeWalt, Norwest, Wing Venture Capital, HSBC, Samsung Next and QBeat, as well as strategic backers AMD Ventures, Qualcomm Ventures and IonQ. Individual proceeds will depend on each holder's stake and the final transaction structure. The headline valuation should not be confused with immediate cash proceeds, since the Intel share component remains exposed to movements in Intel's stock price.
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