Intel's $2.3 Billion Classiq Deal Set to Pay Founders Up to $100 Million Each

Intel's $2.3 billion acquisition of Israeli quantum computing startup Classiq will pay each of its three co-founders between $80 million and $100 million, according to a report by Calcalist. The payout ranks among the largest founder windfalls in Israeli tech this year.

Entrée Capital, the fund that led Classiq's pre-seed round, stands to collect more than $300 million from an initial investment of just a few million dollars. Team8 Capital and Israeli insurer The Phoenix are also positioned for substantial returns.

How did the deal get structured?

The consideration combines cash and Intel shares, according to the report. That structure matters: part of the value stays exposed to movements in Intel's share price, and precise proceeds for each shareholder depend on the final terms. The headline $2.3 billion should not be confused with the cash shareholders receive immediately.

The deal values the six-year-old company well above its most recent private funding valuation. Classiq has raised roughly $200 million since its founding in 2020, meaning the acquisition delivers a substantial multiple on invested capital for backers who supported the company when quantum computing software was still an emerging market.

Who wins biggest?

Entrée Capital emerges as the largest venture beneficiary. The fund was one of Classiq's first investors, led the pre-seed round and kept participating in later rounds. Its expected take exceeds $300 million.

Team8 Capital, another early backer, holds the second-largest stake at 9%. At the $2.3 billion valuation, that holding is worth approximately $207 million before final deal terms and equity adjustments.

The Phoenix, Israel's insurance and financial services group, holds 7.5%, worth about $172.5 million at the headline valuation. Its position means the deal benefits not just venture funds and founders, but also savers invested through institutional financial products.

The wider cap table includes:

• NightDragon, led by former McAfee CEO Dave DeWalt
• Norwest, Wing Venture Capital, HSBC, Samsung Next and QBeat
• Strategic investors AMD Ventures, Qualcomm Ventures and quantum computing company IonQ

Each investor's proceeds will depend on its stake and the final transaction structure.

What about the founders and employees?

Classiq's founders built the company on deep technical pedigree. CEO Nir Minerbi and CPO Amir Naveh are graduates of the Israel Defense Forces' Talpiot program. CTO Prof. Yehuda Naveh, Amir's father, previously held a senior position at IBM's Israeli development center. Their expected $80 million to $100 million each is striking for a company of Classiq's size — it employs around 150 people.

Employees hold roughly 10% of the company collectively, a stake worth about $230 million at the acquisition price. Intel has also allocated more than $100 million in retention grants to keep employees on board after the deal closes.

Classiq doesn't build quantum computers. It develops software that lets users design and run quantum algorithms across different hardware platforms — the software layer designed to make increasingly complex machines easier to program and use. That positioning made it an attractive target for Intel as the quantum race intensifies.

For Intel, the bet is that quantum software talent is scarcer than quantum hardware ambition. The final accounting for every shareholder will only become clear once Intel's share price and the deal's closing terms settle.