Kleiner Perkins Launches $1.8B Funds, Marks 50th Year

Kleiner Perkins Celebrates 50 Years and Secures $1.8 Billion in New Funding

Kleiner Perkins, a well-established venture capital firm in Silicon Valley, is commencing 2022 with a significant milestone. The firm is marking its 50th anniversary in operation and has successfully raised $1.8 billion across two new investment funds – KP20 and Select2.

Fund Details: KP20 and Select2

KP20 represents an $800 million venture fund. Its investment strategy centers on companies in their early stages, spanning sectors like enterprise technology, consumer products, hardtech, fintech, and healthcare.

Select2, a larger fund totaling $1 billion, is the largest single fundraise in the firm’s history. This fund builds upon Kleiner Perkins’ established investment approach, concentrating on investments at key inflection points within the same five core areas.

The launch of Select2 follows the announcement of the $750 million Kleiner Perkins Select fund in April of the previous year.

A Continued Focus on Dedicated Venture Capital

According to Partner Ilya Fushman, the firm’s fundamental principles remain consistent with those established in 1972. He emphasized that venture capital is a specialized field requiring dedicated professionals with diverse expertise encompassing technology, operations, and investment strategies.

Fushman highlighted the firm’s history of early investments in prominent companies such as Google, Amazon, Netscape, and Genentech. He stated that the current investment team, assembled over the past four years, is poised to lead the firm into its next phase, supporting the development of future iconic companies.

New Partner Promotions

Alongside the new funds, Kleiner Perkins has announced the promotion of two team members to the role of partner. These include Annie Case, an expert in consumer marketplaces and digital health, and Josh Coyne, who specializes in investments within the business software sector.

Emerging Trends in Investment

Annie Case shared insights into current investment trends. She noted increased investment in mental and behavioral health, as well as alternative medicine within the digital health space. On the consumer side, education technology is experiencing significant growth, driven by adaptations in teaching methods during the global pandemic.

The firm is also dedicating more resources to exploring opportunities in the rapidly evolving fields of cryptocurrency and web3.

Adapting to a Growing Market

Fushman explained that the $1.8 billion fundraising reflects the changing landscape of the venture capital market. Companies are now expanding more rapidly and across multiple sectors and geographies.

The increased scale of opportunities is evident in both exit valuations and the number of new companies being founded annually. Having greater capital available allows Kleiner Perkins to participate in later funding rounds and provide substantial initial investments while maintaining its commitment to comprehensive venture support.

Providing a Full Spectrum of Capital

“The current venture market presents an opportune moment to expand beyond early-stage investments and offer a complete range of capital options,” Fushman stated. “We can leverage the Select fund to support companies as they reach inflection points or to participate in Series A rounds if opportunities arise, all while continuing to provide the early-stage assistance for which Kleiner Perkins is known.”