Dell starts a $100 million startup fund

Correct me if I'm wrong, but this reads like debt with favorable credit terms? And you need to have already raised a round...<p>"Through Dell Financial Services, qualified angel and venture-backed companies can access up to 10 percent of their funded amount, or up to $150,000, with accelerated, limited credit terms. For those in needs of higher credit, additional financing is available on a fast track basis with a few extra steps." [1]<p>"Through Dell Financial Services, eligible startups who have already been backed by angel investors or venture capitalists can get up to 10% of their funded amount, or up to $150,000, with accelerated, limited credit terms. Startups also get a dedicated Dell sales team, as well as ProSupport Services for any Dell business products they use." [2]<p>[1] <a href="http://content.dell.com/us/en/corp/d/secure/2012-06-07-dell-innovation-startup-financing" rel="nofollow">http://content.dell.com/us/en/corp/d/secure/2012-06-07-dell-...</a><p>[2] <a href="http://smallbiztrends.com/2012/06/dell-innovators-credit-fund-startups.html" rel="nofollow">http://smallbiztrends.com/2012/06/dell-innovators-credit-fun...</a>

Dell has nearly $14b in cash and $4.8b in long term investments (which can probably be quickly liquidated ala the way Apple stores its long term investments).<p>Most large tech companies run investment funds of one sort or another, so I guess it's not surprising Dell would. They certainly have enough capital to do so.<p>Am I the only one that thinks Michael Dell should just take the company private? $20b market cap, a 6.5 pe ratio, and you could probably finance 1/3 of it with the cash alone. Maybe he doesn't want to risk his wealth at this juncture in life, but Dell seems like a strong candidate for going private.

It's less important that Dell invests in companies (<i>of course</i> they do!), it's more important how this is being publicized. Terms like <i>startup</i> are becoming pervasive household names in corporate finance. Not-so-suddenly, corporations are overtaken with a new trend: fund some startups, and they might help your geriatric company's stagnation. It's like having grandchildren late in life.<p>I can already imagine: 5 years from now, McDonald's funds startups. Possibly something to do with transforming pig dung into a renewable energy source. Humoristically, stock prices go plummeting because Burger King has higher-yield, lower-margin cow dung to process.

Dell announced this last week [1]:<p><i>"New initiative targets startup debt capital needs, connects firms with scalable technology solutions, markets and networks for growth"</i><p><i>"[It] provides entrepreneurs up to $100M in the financial and scalable technology resources they need to maximize potential for innovation, speed to market and job creation..."</i><p>This is a small change for the company and a great way to tap into innovation; plus support new businesses. May also get them early access to some new technology.<p>Good news for Dell and startups.<p>1- <a href="http://content.dell.com/us/en/corp/d/secure/2012-06-07-dell-innovation-startup-financing" rel="nofollow">http://content.dell.com/us/en/corp/d/secure/2012-06-07-dell-...</a>