Kleiner Perkins, a long-standing venture capital company in Silicon Valley, is launching out 2022 with a bang, celebrating five decades in business and raising $1.8 billion for two new funds, KP20 and Select2.
KP20 is a $800 million venturing fund that focuses on early-stage investments in enterprise, consumer, hardtech, fintech, and healthcare firms, while Select2 is a $1 billion fund that expands KP20’s core investment approach to include high-inflection investments in the same five categories.
Kleiner Perkins Select2 is the follow-up to the firm’s $750 million Kleiner Perkins Select fund, which was disclosed in April.
Kleiner Perkins’ objective, according to partner Ilya Fushman, is the same now as it was in 1972: “Venture is a non-scalable, boutique skill that needs very devoted practitioners with broad and complementary experiences that span technology, operations, and investment.”
Fushman said the investor team curated over the last four years is taking over the next generation of the firm, while the new funds will be able to back the next generation of iconic companies, with a history of being early investors in technology darlings like Google, Amazon, Netscape, and Genentech.
In addition to the money, Kleiner Perkins upgraded Annie Case, a consumer markets and digital health specialist, and Josh Coyne, who manages business software investments, to new partners.
Case told that more funding is going into psychological and cognitive health and alternative medicines in the digital health space, while there is a lot going on in education technology on the consumer side, owing to school districts and parents adapting to the experience of teaching during the global pandemic. In addition, the business is devoting more effort to investigating crypto and web3 potential.
Kleiner Perkins is reacting to the present circumstances, according to Fushman, where firms are not only expanding larger and quicker, but also growing across industries, technology, and worldwide. The size of the potential is larger than it has ever been, as shown by exit values and the number of firms founded each year.
Furthermore, having more fund cash at the firm’s disposal allows it to deploy it in later rounds, or with a larger check to get in, while still being able to give the same early-stage venture help Kleiner Perkins is renowned for.
“The market overall for venture makes it an exciting time to grow beyond early-stage and provide a full spectrum of capital,” Fushman said. “As we help companies grow, if we see them hitting an inflection or we miss out on the Series A, we can do something from the Select fund.”
Subtly charming pop culture geek. Amateur analyst. Freelance tv buff. Coffee lover