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IBM opens venture-capital center in Dublin

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Sep 27, 20062 mins

Big Blue is also opening an Innovation Center aimed at helping local software developers

IBM launched its European Venture Capital Center in Dublin, the first such center outside of the company’s corporate offices in Menlo Park, California.

The center will be a place where IBM helps unite European startup companies with venture-capital firms and also where IBM can share some of its experiences with startups.

Often small companies have found investors but lack the expertise to globalize and scale their offerings, said Nick Donofrio, IBM’s executive vice president for innovation and technology, speaking during a press conference in Dublin. “We have those skills,” he said.

IBM will share such expertise with startups that participate in the center through events including subject-specific round tables or large conferences, such as one that IBM held in New York last week. Encouraging the success of emerging businesses ensures that IBM has strong partners to add to its ecosystem into the future, he said.

IBM does not intend to invest in any of the participating companies directly but could in rare cases consider buying a company that might be developing technology fundamental to IBM’s business, Donofrio said.

IBM chose to place the center in Ireland in part due to its 50 year history in the country but also because of other factors that make it an ideal location. Ireland has a strong academic environment, government support for emerging technology companies, a culture of entrepreneurship and a presence of many global companies, said Deborah Magid, director of strategic alliances, software strategy for IBM Venture Capital Group.

She couldn’t say how many people the new center might employ but added that existing IBM staff would likely contribute to the center’s efforts.

IBM is also opening an Innovation Center in Dublin, aimed at helping local software developers test and build products.

In July, IBM said it was investing €46 million ($59 million) and hiring 300 workers in Dublin. The new Venture Capital Center and Innovation Center are part of that ongoing investment.

nancy_gohring

Nancy Gohring is a freelance journalist who started writing about mobile phones just in time to cover the transition to digital. She's written about PCs from Hanover, cellular networks from Singapore, wireless standards from Cyprus, cloud computing from Seattle and just about any technology subject you can think of from Las Vegas. Her work has appeared in the New York Times, Computerworld, Wired, the Seattle Times and other well-respected publications.

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