Qualcomm Inc. (Nasdaq: QCOM) announced Tuesday it will put $500 million into Qualcomm Ventures, a new organization that will invest in startup companies to support the adoption of CDMA technology and drive usage of the wireless Internet.
Shares in the pioneer of Code Division Multiple Access (CDMA) digital wireless technology closed up 1.13 to 75.06 Monday. The company's European CDMA patents were recently upheld against a challenge from Nokia (NYSE: NOK).
The $500 million commitment to will be invested over a period of 4 years. Companies receiving investments from the venture fund will get access to Qualcomm's research and development expertise, engineering resources, business and strategic relationships, and other portfolio companies.
Qualcomm Ventures will be managed by Jeff Jacobs, senior vice president of business development for the company. The fund will target strategic investments within areas such as communications devices and applications; wireless communications components and infrastructure; Internet infrastructure, content and services; and, enabling and complementary technologies.