MDV Leaves Pixim Fold

Pixim, a Mountain View, Calif.-based maker of chips for video security and surveillance cameras, yesterday announced that it had raised $15 million in new VC funding. It’s the company’s first round since a $12 million VC recap in 2005, which came after VCs had invested around $75 million (mostly during the bubble). The recap round included existing backers Mohr, Davidow Ventures, Newbury Ventures and Mayfield Fund – but only Mayfield came back aboard this time around (along with new backers Tallwood Venture Capital and Ridgewood Capital).

 I can’t speak to what happened with Newbury, which held onto its existing shares (but not its existing board seat). As for MDV, it actually sold its entire Pixim stake just prior to the new oversubscribed round. Had it lost faith? In part, yes. But the larger factor was that Pixim no longer had a champion at MDV, following the 2005 departure of partner Rob Chaplinsky to form Bridgescale Partners. Had Pixim been going gangbusters, MDV most likely would have held on. But with neither obvious homerun prospects nor someone around the table to argue for them, the remaining MDV opted to focus their attentions on other opportunities…