Dell launches $300m startup fund to kickstart turnaround

Dell is confident that turning private will pay off in the long term as it unveiled plans to make aggressive investments in startups and double-down on internal R&D.

Michael Dell, founder and CEO of Dell aimed to allay customer fears by claiming that privatisation has given the firm a new-lease of life.

"This privatisation has really created a new sense of excitement about Dell. It feels like I'm part of the world's largest startup," he told Dell World attendees in Austin, Texas.

"Now as a private company we have the freedom to make the bold moves that are necessary - invest in emerging markets, in PCs and tablets, software [and] the datacentre."

The CEO announced a $300 million Dell Ventures investment fund as it turns to startups to help kickstart growth. Dell is looking to invest in firms which make innovative use of the cloud, big data, date centres, security and mobility. The thinking is that by investing in emerging technology, Dell will be able to gain a competitive advantage in the long-run.

Dell also announced that it will ramp up its internal R&D efforts.

"We've established a Dell research division to deliver organic innovation that is disruptive - that bridges across all of Dell and has a long range focus - five to 10 years out. We'll also collaborate with leading research universities," he continued.

But this renewed focus on emerging technology will not come at expense of the firm's long established PC business, which Dell remains committed to.

"The PC continues to be important to our customers and is key to Dell's strategy. Two out of three of the commercial customer relationships we have start with the PC," Dell added.

"There are also great scale advantages that come from our participating in the client business. There are 500 million of these devices sold a year and we're growing our share."