The Wall Street Journal: Venture-capital firm Kleiner Perkins to split over strategy differences

Tom Perkins, co-founder of Kleiner Perkins Caufield & Byers, which is splitting over investing strategy differences

Kleiner Perkins Caufield & Byers is splitting in two, a surprise rupture that reflects the storied venture-capital firm’s struggle to balance making smaller bets on young startups and jumbo investments in companies on the cusp of initial public offerings.

The Silicon Valley firm’s growth-investment team focused on later-stage funding is leaving the firm, spurred partly by internal differences over investing strategy and resulting in the departure of famed former Morgan Stanley analyst Mary Meeker. The split is the firm’s most striking move in its four decades, restoring it to its smaller, early-stage roots, best known for initial bets in Google GOOG, -0.24% GOOGL, -0.35%   and Amazon.com Inc. AMZN, -0.99%  

The move is indicative of the changing fortunes in venture capital, as funds over the years ballooned to levels not seen since the dot-com boom and startups stayed private longer with money that in past eras would have been raised in the public markets. Big firms such as Kleiner have sought to wrangle both ends of the startup market, adding growth funds to capture larger pre-IPO deals that traditional early-stage vehicles weren’t designed for.

Also: Next recession won’t come from household debts, prize-winning forecaster says

At Kleiner, tensions brewed between the two sides of the firm over investing approaches, particularly as the flagship early-stage fund’s hits have been meager, relegating the firm’s once-stellar returns to a middling rank in the market, according to people familiar with the matter.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ:

The Billion-Dollar Mustery Man and the Wildest Party Vegs Ever Saw

Cord-Cutters Beware: Streaming TV Prices Are Marching Higher

Filed in: Top News Tags: 

You might like:

Market Snapshot: Dow posts back-to-back records, books best weekly since July Market Snapshot: Dow posts back-to-back records, books best weekly since July
Tilray stock slammed as cannabis sector finishes turbulent week Tilray stock slammed as cannabis sector finishes turbulent week
Key Words: Anthony Bourdain in trailer for show’s final season: ‘I pinch myself’ Key Words: Anthony Bourdain in trailer for show’s final season: ‘I pinch myself’
Walmart letter warns tariffs will raise prices and tax American businesses Walmart letter warns tariffs will raise prices and tax American businesses
NewsWatch: Dow, S&P 500 records belie festering fear that China and the U.S. ‘are on a collision course’ NewsWatch: Dow, S&P 500 records belie festering fear that China and the U.S. ‘are on a collision course’
Outside the Box: It’s time for companies to end the obsession with millennials and hire older workers with skills and expertise Outside the Box: It’s time for companies to end the obsession with millennials and hire older workers with skills and expertise
The Ratings Game: iPhone lines were shorter this year, though that might not mean much for Apple The Ratings Game: iPhone lines were shorter this year, though that might not mean much for Apple
The Wall Street Journal: U.K.’s May says Brexit talks have reached ‘an impasse’ The Wall Street Journal: U.K.’s May says Brexit talks have reached ‘an impasse’

Leave a Reply

Submit Comment
© 9372 Stock Investors News. All rights reserved. XHTML / CSS Valid.