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The Wall Street Journal: Venture-capital firm Kleiner Perkins to split over strategy differences

Bloomberg
Tom Perkins, co-founder of Kleiner Perkins Caufield & Byers, which is splitting over making an investment technique variations

Kleiner Perkins Caufield & Byers is splitting in two, a wonder rupture that displays the storied venture-capital firm’s fight to balance making smaller bets on young startups and jumbo investments in companies on the cusp of preliminary public offerings.

The Silicon Valley firm’s growth-investment group thinking about later-stage funding is leaving the firm, spurred partly through inner variations over making an investment technique and ensuing in the departure of famed former Morgan Stanley analyst Mary Meeker. The cut up is the firm’s maximum placing move in its 4 many years, restoring it to its smaller, early-stage roots, perfect known for preliminary bets in Google GOOG, -0.24% GOOGL, -0.35%   and Amazon.com Inc. AMZN, -0.99%  

The move is indicative of the converting fortunes in venture capital, as funds over time ballooned to ranges now not seen for the reason that dot-com growth and startups stayed private longer with money that in previous eras would were raised in the public markets. Big firms akin to Kleiner have sought to wrangle each ends of the startup market, including progress funds to capture better pre-IPO deals that traditional early-stage vehicles weren’t designed for.

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At Kleiner, tensions brewed between the 2 facets of the firm over making an investment approaches, in particular because the flagship early-stage fund’s hits were meager, relegating the firm’s once-stellar returns to a middling rank out there, in line with other people aware of the matter.

An expanded model of this report seems on WSJ.com.

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