time to read 3 minutes

Intel has HealthTech FOMO and hopes to raise $1b to join the partyINTL

Intel has HealthTech FOMO and hopes to raise $1b to join the party

It looks like Intel Corp. (INTC) is planning on raising big dollars for an SPAC (special purpose acquisition company), intended on targeting deals in the health technology market. Chairman Omar Ishrak, who used to be the head of medical device titan Medtronic Plc, is reportedly looking to raise between $750m to $1b for a blank check firm. The group spearheading the potential company is also made up of industry veterans, including the son of BlackRock’s Larry Fink, hedge fund manager Joshua Fink, and Medtronic exec Jean Nehme (quite the HealthTech dream squad!).

SPAC deals skyrocketed to fame last year, raising almost $80b in US stock markets. This year, more than 50 companies have raised $15b so far – and we’re only halfway through January.

why it matters
The coronavirus pandemic exposed many cracks in healthcare systems around the world, making it clear that sometimes, a tech-first approach is not only more effective but essential. Hospitals around the world are becoming more efficient as the use of, for example, AI, and robot-assisted surgeries, are becoming more and more common. The sky is the limit in the HealthTech sector really, so it is no surprise that companies within and outside the industry are scrambling to come up with profitable solutions to some of our current problems. The real question here is – what does a big Silicone Valley company like Intel want to do within the HealthTech sector? Do they have something differentiated in the works or are they just suffering from FOMO?