Key Takeaways
- • Kleiner Perkins is splitting into two separate entities: an early-stage venture firm retaining the Kleiner Perkins brand, and a late-stage growth investment operation led by departing partner Mary Meeker.
- • Mary Meeker, the renowned "Queen of the Internet" from her Morgan Stanley analyst days, is departing Kleiner Perkins along with three executives: investors Mood Rowghani and Noah Knauf, and HR and team-building expert Juliet de Baubigny.
- • Meeker's new growth fund will manage the $1 billion KPCB Digital Growth Fund III, which the departing team will continue to invest from until their full exit later in 2018.
- • The split reflects structural changes in venture capital markets, where larger check sizes for seed and Series A rounds, combined with increased operational support requirements, have created diminishing overlap between early-stage and late-stage investing, necessitating specialized, focused operations.
- • Meeker's investment team at Kleiner previously led late-stage investments in major companies including Uber, demonstrating the scale and track record of the departing growth unit.
Summary
Kleiner Perkins announced on Friday that it is bifurcating its business into two separate operating entities, marking a significant organizational restructuring at one of Silicon Valley's most established venture capital firms. The split will separate early-stage venture investing—which will continue under the Kleiner Perkins brand—from late-stage growth investing, which will operate as an independent firm.
The departure of Mary Meeker, a legendary figure in venture capital and technology analysis, signals the magnitude of this transition. Meeker, who earned the moniker "The Queen of the Internet" during her tenure as a Morgan Stanley analyst in the late 1990s dot-com era, will lead the new growth-focused entity. She is joined by three other Kleiner executives: investment partners Mood Rowghani and Noah Knauf, and Juliet de Baubigny, who will direct human resources and team-building functions at the new operation. Until their formal departure later in 2018, Meeker and her team will continue to deploy capital from Kleiner's KPCB Digital Growth Fund III, which manages $1 billion in assets.
Kleiner Perkins attributed the split to evolving market dynamics in venture capital. In a statement, the firm noted that "the environment for venture has evolved—with larger checks being written for seed and A rounds and more support from partners required to build companies—demanding a high degree of specialization and extreme focus to excel." The firm concluded that the structural divergence between venture and growth investing has reduced operational overlap, making two separate, specialized entities the optimal organizational model.
Meeker's profile extends beyond her current venture role. She continues to publish an influential annual "Internet Trends" report, which remains widely read by investors and industry participants. Her departure from Kleiner Perkins represents a strategic repositioning for both her career and the firm's portfolio strategy, as the growth investing team has historically managed significant late-stage investments, including stakes in Uber.
The split follows approximately one month of internal discussions at Kleiner Perkins and positions the firm to operate with distinct strategic focuses: maintaining early-stage venture operations under its historic brand while allowing growth-stage investing to develop as an independent, specialized operation better suited to the capital requirements and operational demands of late-stage company building.
The departure of Mary Meeker, a legendary figure in venture capital and technology analysis, signals the magnitude of this transition. Meeker, who earned the moniker "The Queen of the Internet" during her tenure as a Morgan Stanley analyst in the late 1990s dot-com era, will lead the new growth-focused entity. She is joined by three other Kleiner executives: investment partners Mood Rowghani and Noah Knauf, and Juliet de Baubigny, who will direct human resources and team-building functions at the new operation. Until their formal departure later in 2018, Meeker and her team will continue to deploy capital from Kleiner's KPCB Digital Growth Fund III, which manages $1 billion in assets.
Kleiner Perkins attributed the split to evolving market dynamics in venture capital. In a statement, the firm noted that "the environment for venture has evolved—with larger checks being written for seed and A rounds and more support from partners required to build companies—demanding a high degree of specialization and extreme focus to excel." The firm concluded that the structural divergence between venture and growth investing has reduced operational overlap, making two separate, specialized entities the optimal organizational model.
Meeker's profile extends beyond her current venture role. She continues to publish an influential annual "Internet Trends" report, which remains widely read by investors and industry participants. Her departure from Kleiner Perkins represents a strategic repositioning for both her career and the firm's portfolio strategy, as the growth investing team has historically managed significant late-stage investments, including stakes in Uber.
The split follows approximately one month of internal discussions at Kleiner Perkins and positions the firm to operate with distinct strategic focuses: maintaining early-stage venture operations under its historic brand while allowing growth-stage investing to develop as an independent, specialized operation better suited to the capital requirements and operational demands of late-stage company building.
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