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Cavium Networks IPO: Mellanox Investor Ties

May 3, 2007 on 8:33 am | In Company Analysis, Investor Analysis, In the news, IPO |

Cavium Networks Rises 22 Pct. After IPO (AP)

Cavium Networks is the latest among recent successful IPOs.  An earlier post examines the Relational network of Cavium Networks, highlighting its predominant Active Acquired company connections.  One of its connected companies also recently went public, Mellanox Technologies.  In light of their recent IPOs, I decided to examine the capital links between Cavium and Mellanox Technologies.  First I illustrate using their combined Relational Map.  Because of their multiple connections, I filtered out pendants and increased the MinLink to 3 (including only those companies with 3 ties in the network) in their below Investment Map.

Cavium & Mellanox Investment Relational Map (MinLink=3, Pendants dropped). Note the tie to Ikanos Communications, which went public in late 2005.  Here we see a multitude of investors and related companies because both Cavium (10) and Mellanox (14) each had a large number of investors.  To simplify the map, let’s remove the investors from the map using the Investor Filter.

Cavium & Mellanox Investment Relational Map (MinLink=3, Pendants dropped, Investors filtered out). Here we see only the direct connections between Cavium and Mellanox.  This visualizes only the common investor connections between the two: Saints Capital and China Development Industrial Bank.  Let’s examine this relationship in further detail by mapping these investors together, dropping pendants, and filtering out companies from their investment map.

Saints Capital & China Development Industrial Bank Investment Relational Map (Pendants dropped). Notes: (1) They have no inactive common portfolio companies; and (2) Of their 8 co-investments: 2 recently went public (Cavium & Mellanox); 3 were recently acquired (IXI Mobile, Tropian, & Silverback Systems); and 3 are private (InnoPath Software, Atrica, & Pixim).  Over the past year, 5 of the 8 companies co-invested by Saints & CDIB had exits.  Following this trend, the co-invested private companies of InnoPath, Atrica, & Pixim deserve close watch, especially since they all received recent round fundings.