Stretch raises $15 million for surveillance camera chips

January 26, 2009 | Dean Takahashi | Comments | |

Stretch, provider of fabless semiconductor components, has raised $15 million to continue making chips for surveillance cameras. The Sunnyvale, Calif.-based company plans to use the funding to expand its customer base around the world. It currently makes three different types of processors to support digital video in the latest security cameras.

The company’s processors run alongside image sensors (which capture pictures) made by Pixim, another chip company that has had success raising money as it targets the security market. Stretch’s chips compress the data so that less information has to be transferred over data transmission lines. Next-generation security cameras that are better able to capture video in bright or dark places are in high demand in surveillance-oriented markets like China.

The company’s software-configurable processors can also be used in consumer products like digital video recorders, machine vision and mobile cameras.

The investment round, a follow-up to the company’s second round of funding in March of 2008, was co-led by Worldview Technology Partners, Oak Investment Partners, and Menlo Ventures. The company has 65 employees.

Competitors include Mobilygen, which was acquired by Maxim, and W&W, which was acquired by Cavium Networks. Texas Instruments could also prove to be a formindable foe. But Stretch enjoys a promising roster of clients, including Matrox, Euresys, Lanner and DVTech, said Bob Bleachler, vice president of marketing. Founded in 2002, it has raised $116 million to date.

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About the Author, Dean Takahashi

Dean is lead writer for GamesBeat at VentureBeat. He covers video games, security, chips and a variety of other subjects. Dean previously worked at the San Jose Mercury News, the Wall Street Journal, the Red Herring, the Los Angeles Times, the Orange County Register and the Dallas Times Herald. He is the author of two books, Opening the Xbox and the Xbox 360 Uncloaked. Follow him on Twitter at @deantak, and follow VentureBeat on Twitter at @venturebeat.

  • PonziSchemes
    Another company that raises several hundred million dollars in financing in the face of entrenched and growing competition only to fold up after a while for cents on the dollar at best. Examples: Force10, 3ParData, OnStor, etc.
    And what's funny is that it is Worldview behind all of them. Looks like a ponzi scheme for Worldview partners (the few that remain) to collect the management fees.
    Here's a suggestion: look at all the Worldview deals, count the numbers that raises in excess of $100M and see what became of them, and crosscheck companies funded by both Worldview and Oak (tip: Commverge) and see what became of them.
  • Stretch raises $15 million for surveillance camera chips but with this surveillance camera even can save some billions...can save some life..