Slow going for RWI’s second fund

RWI Ventures is more than halfway to its $100 million target for its second fund.

The Menlo Park, Calif.-based firm recently closed on $56.2 million toward RWI Ventures II, according to regulatory filings. That’s just slightly more than the $52 million it had raised at the end of June.

The fund was launched in December 2005, according to documents. The St. Paul Teachers’ Retirement Fund Association is an investor in fund II along with 31 others.

The slow pace of fund-raising is surprising, considering that RWI’s first fund has recorded six exits from its portfolio—three through IPOs and three through acquisitions. Its first fund totaled $103 million and was raised in 2000.

Software maker PDF Solutions (Nasdqa: PDFS) went public with a $54 million IPO in 2001 after it had raised a little more than $10 million from RWI, Telos Venture Partners, U.S. Venture Partners and other investors. Its market capitalization is now more than $400 million.

Glucose monitoring company DexCom (Nasdaq: DXCM) went public in a $55 million offering in 2005 after it raised $74.5 million from 11 firms over four rounds. Its market capitalization is now just under $300 million.

And fabless semiconductor company Vimicro International (Nasdaq: VMIC) went public in a $87 million offering in 2005 after it had raised almost $25 million from RWI, The Capital Group, General Atlantic and Fujitsu Microelectronics. Its market capitalization is now over $400 million.

RWI’s acquisitions have not been as impressive. It sold search company Softface, which had raised $18 million from VCs, for $8 million in 2004. It sold software maker Intraspect Software, which had raised more than $86 million from VCs, for $20.3 million in 2003. And it sold e-commerce company Cybrant, which had raised $31.8 million from VCs, for $6.8 million in 2002. —Alexander Haislip