Unlike Intel Capital, which functions much like a venture capital firm within Intel Corp. [INTC], IBM Corp.'s [IBM]  venture unit doesn't invest money in startups but rather teams up with VC firms to identify nascent companies that are developing technologies the computer giant believes will benefit its customers down the road.

"Our business is to generate revenue through the customer needs that we can identify," explains Claudia Fan Munce, managing director, IBM Venture Capital Group, in Tech Confidential's Behind The Money video interview.

"Our stockholders do not really reward us for investing, because it's not really our core business, whereas [VCs'] limited partners are asking them to generate financial returns. It's a very synergistic relationship that works very well," says Munce, who also serves as the chair of the National Venture Capital Association Advisory Board. 

For tech startups, including early-stage cleantech companies, such as SynapSense Corp. -- which makes a wireless sensor network for energy benchmarking and data center monitoring and closed a $10 million Series B in September, with backing from Emerald Technology Ventures, American River Ventures, Nth Power and DFJ Frontier -- IBM's early input on how to commercialize technology and key customer introductions are invaluable.

For more on cleantech startups and their investors, see Tech Confidential's special report on the wind industry.For more on Claudia Fan Munce, see Feb. 8 story from TheDeal.com. - Mary Kathleen Flynn

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