| SAN FRANCISCO
SAN FRANCISCO May 17 Kleiner Perkins Caufield &
Byers said it had raised a $525 million fund, less than its
previous comparable fund of $650 million, reflecting a school of
thought in Silicon Valley that smaller venture-capital funds
often outperform large ones.
The fund also has a majority of partners, known as managing
members, who focus on technology rather than green investments
and the environment, marking a shift away from an investment
area that Kleiner had tried to carve out as its own.
KPCB XV, as the fund is called, lists technology-focused
partners such as Mike Abbott, Chi-Hua Chien and Bing Gordon as
While green-investments champion John Doerr is also on the
list, managing partner Ray Lane, known for investments in
companies such as clean-automaker Fisker and solar company
Ausra, is not.
A smaller emphasis on clean tech, as investments in fields
such as solar energy and electric automobiles are known, could
help trim the firm's investment bills. Straight-up technology
companies, especially Internet-focused ones, typically require
less money to grow than do clean-tech companies, especially at
the early stages, where this fund is focused.
There are also public relations reasons to cut the size,
with many big funds coming under fire for lacking the nimbleness
needed to invest in smaller, growing companies.
A recent report from the Kauffman Foundation, an
organization that studies and promotes entrepreneurship, said
that of the funds in its own investment portfolio that raised
more than $500 million, none returned more than twice its
invested capital after fees.
Still, a handful of firms continue to focus on outsized
funds. Last quarter, Andreessen Horowitz raised $1.5 billion,
the firm's largest fund to date. New Enterprise Associates is
raising a fund that could reach $2.3 billion.
Although it has closed, regulations allow Kleiner's fund to
grow to as much as $575 million after final investments are
Some of Kleiner's recent early-stage investments include
Zynga, online retailer One King's Lane and
smart-thermostat maker Nest.
Kleiner raised its previous KPCB XIV in 2010. It has also
raised a $1 billion digital-growth fund and a $250 million SFund
to invest in social media.