Dell (NASDAQ:DELL) has created a venture fund to invest in the development of data storage technology.
The $60 million fund, called the Dell Fluid Data Storage Fund, will target enterprise storage companies focusing on data memory architecture, networking, virtualization and cloud storage. Dell says the fund will make investments between $3 million and $5 million in a small number of early-stage start-ups, Forbes reports.
The investment fund is seen as complementing the computer maker’s own research and development program.
Data storage is a relatively small component of Dell’s business, producing just 3% of the company’s revenue during the first quarter. However, the PC maker has been attempting to diversify its business in the face of declining PC sales and increasing competition from mobile devices like Apple‘s (NASDAQ:AAPL) iPad.
Analysts cited by Forbes said the investment fund offers Dell the chance to obtain a close-up view of emerging technologies, providing an opportunity to guide their development into mature products.
The fund will divide its investments between rounds of seed financing to get start-ups off the ground, followed by investments designed to maintain the size of the firm’s equity stake in companies that survive through successive rounds of financing.
Dell shares fell fractionally in Tuesday trading.