Kleiner Perkins is splitting up, with its digital growth team to form a new, independent firm.
Why it matters: Kleiner Perkins is one of the oldest and most successful Silicon Valley venture capital firms, but most of its recent success has been tied to its later-stage deals.
- The firm's "digital growth" team, which has invested in such companies as Uber and Stripe, will spin out into an independent firm. This includes investment partners Mary Meeker, Mood Rowghani and Noah Knauf, plus HR and team-building pro Juliet de Baubigny.
- The early-stage team, which has been largely reconstituted over the past 18 months, will continue operating under the Kleiner Perkins brand.
The decision came after more than a month of internal deliberations between the two groups, with an ultimate recognition that many of the original synergies had faded — particularly as growth deals became larger, more data-driven and more international.
- The specific timing was also driven by fund cycles, as both groups are expected to raise new funds in 2019. Both are currently investing out of 2016-vintage vehicles ($1 billion for growth, $400m for early-stage).
"I'm proud of our time at Kleiner Perkins," says Meeker, adding that split should enable greater "agility and focus" for each group.
No word yet on the growth group's new name or office location, except that its existing three funds will maintain the Kleiner Perkins brand and continue to use the Kleiner Perkins back-office (at least until it stands up its own).
Kleiner Perkins did not inform most of its limited partners about the change until this morning. Below is a copy of the email they just received from partner Ted Schlein, who will continue to focus on early-stage investing: