One doesn't see a lot of exits for private investors in chip startups, but with the
announcement Friday that it would acquire Auvitek International Ltd., radio frequency chipmaker Microtune Inc. (NASDAQ:TUNE) provided one for a group of venture capitalists. That said, it probably won't rank very high on the list of these firms' best investments.
Auvitek, which makes digital television chips, will get $9 million in cash and stock from Microtune plus a potential earnout of undisclosed size. Founded in 2004, Auvitek in 2006 received a $9 million round led by BA Venture Partners; a previous, $4 million round included KLM Capital, Storm Ventures and VenGlobal Capital Fund. The company on its Web site lists Scale Venture Partners as another investor (but doesn't mention BA Venture Partners, so perhaps the investor sold its stake previously). -
Olaf De Senerpont Domis
Comments
Given the IRR, wouldn't you consider this a disastrous investment?