Former Top Israeli at Intel Forming Tech Investment Fund

$300 million Eucalyptus Growth Capital will put in money, give advice to companies seeking to go public.

Eyal Toueg

David (Dadi) Perlmutter, Intel’s former chief product officer and for many years the higest-ranking Israeli in the giant semiconductor company, said on Tuesday he had co-founded a venture capital company that aims to raise $300 million to invest in Israeli companies seeking stock market listings.

Eucalyptus Growth Capital will invest in mature high-tech companies to help them expand their business and enter overseas markets, all with the aim of helping them achieve revenues in the hundreds of millions of dollars and turn them into candidates for initial public offerings.

It also plans to seek board seats on the companies it invests in.

“There is a large funnel of Israeli companies with sales of $10 million to $20 million that can grow to be billion-dollar companies in sales and multi-billion dollars in value,” said Perlmutter, co-founder and managing partner at Eucalyptus.

“But they need appropriate funding, long-term strategy and experienced guidance in order to achieve their full potential, rather than sell out at an early stage. We are planning to identify and work with appropriate teams and companies and help them realize their full potential.”

Perlmutter capped a 34-year career at Intel as executive vice president and general manager of Intel’s Architecture Group before leaving the company in 2013. He had once been tipped as a top candidate to take over as Intel’s CEO when Paul Otellini announced his retirement in 2012, but the job wound up going to then-Chief Operating Officer Brian Krzanich.

Eucalyptus will also have two other founding partners – Rami Hadar, a former CEO at publicly traded Allot Communications and Eldad Tamir, who was CEO of the Tamir Fishman investment house.

In addition, Eucalyptus said it had formed an advisory board of tech industry leaders including Otellini and Atiq Raza, former president of AMD, another leading maker of chips.