Iconic VC Firm Kleiner Perkins Considering Focused Fund For Cloud Startups

Iconic VC Firm Kleiner Perkins Considering Focused Fund for Cloud Startups

More than 6 months back, I had written about the launch of the first cloud computing ETF, and how, in my mind, that represented cloud computing’s acceptance in the mainstream investing community (See: Packaging Cloud Computing as an Investment – First Cloud Computing ETF Launched). Now, this latest development may not be as mainstream, but it is certainly important considering the venture capital firm involved – Kleiner Perkins Caufield & Byers.

According to a Bloomberg news report , the VC firm is contemplating starting a new fund focused on startups selling cloud services to corporations. Matt Murphy, a partner at the firm, has been quoted as saying that the partners “have talked about it, and are intrigued by the idea,” even mentioning a possible figure of $100 million of investment this year.

VC firms backing cloud startups is nothing new. After all, that has been the regular focus of several recent articles. However, when Kleiner Perkins talks about a focused fund for this purpose, the world takes notice. Why is it so?

This is because Kleiner Perkins enjoys a reputation unsurpassed in the venture capital community. After all, they had backed some of the biggest technology companies of our time, including Amazon.com, Sun Microsystems, Electronic Arts, Genentech, Intuit, AOL and Google. Not for nothing has the Wall Street Journal hailed Kleiner Perkins it as one of the “largest and most established” venture capital firms in the world. Other encomiums include New York Times’ “one of Silicon Valley’s most prominent venture capital firms,” and Reuters calling it “one of the most successful venture capital firms in the world.” Thus, many of the most prominent names in technology owe a lot of their success to Kleiner Perkins.

It’s not that Kleiner Perkins is a stranger to cloud computing. In fact, it had backed Puppet Labs (See: Cloud Computing Startups Raise Big Money: UPDATE 4)  and Nebula last year (See: The Hottest New Cloud Computing Startup: Nebula), along with eight other cloud startups, collectively putting in $100 million. More recently led a $20 million Series C round for AppDynamics. But the creation of a specific fund for this purpose is good news for cloud computing in general and cloud computing startups in particular.

And there’s good reason why Kleiner Perkins is considering such a move. According to Matt Murphy, “Companies’ comfort level and willingness to adopt the cloud is hitting an acceleration point. Now’s the most interesting time in the last 10 years to be investing in enterprise-based companies.”

If the cloud startup fund does happen, it would not be the first such fund for Kleiner Perkins. The firm already has the $200 million iFund that invests in applications, services and components for mobile Internet devices, and another $250 million fund focused on social startups.

By Sourya Biswas

Sorry, comments are closed for this post.

Cloud Pricing: What In The End Am I Actually Paying For?

Cloud Pricing: What In The End Am I Actually Paying For?

Cloud Pricing: What In The End Am I Actually Paying For? I’ve been blogging about this concept now for a while. What is the cost of a cloud solution and what in the end am I actually paying for? I know I am not the only person considering this as I’ve seen any number of articles…

Cloud Email Marketing Services vs. Transactional Email Services

Cloud Email Marketing Services vs. Transactional Email Services

Cloud Based Email Marketing Services Every business can benefit from successful implementation of email marketing strategies, but the variety of SaaS on the market can be a little overwhelming at times. Whether you’re interested in learning more about email marketing or hoping to clear up any confusion surrounding transactional email, a little research into these…

The Concept Of Securing IoT To Secure Your Building

The Concept Of Securing IoT To Secure Your Building

Securing IoT Ah, security. It is the dulcet tone of a symphony that we play over and over in the IT world. IoT (Internet of Things) and the myriad of connected devices allow us some intriguing security options. For example, in a mesh array of sensors, you could effectively force users to correctly identify themselves…

Is Fear Holding Back a Next Generation of Cyber Security Approaches?

Is Fear Holding Back a Next Generation of Cyber Security Approaches?

Next Generation of Cyber Security As I walked through RSA last week, I was struck by the usual fear laden messages “You’re not safe and never will be but I (vendor) have a silver bullet that will protect you.” And, I wondered if this fear-based approach is deterring a badly needed next generation of cyber…

The True Power And Potential Of Wearables

The True Power And Potential Of Wearables

The Power of Wearables The potential of wearable computing for efficiency and innovation is enormous. For business leaders and CIOs, wearable technology represents an opportunity to find more intelligent solutions to real problems and to leverage these devices for the benefit of the organization. But before wearables can successfully realize these expectations, there remain basic…

Cloud Computing – The Real Story Is About Business Strategy, Not Technology

Cloud Computing – The Real Story Is About Business Strategy, Not Technology

Enabling Business Strategies The cloud is not really the final destination: It’s mid-2015, and it’s clear that the cloud paradigm is here to stay. Its services are growing exponentially and, at this time, it’s a fluid model with no steady state on the horizon. As such, adopting cloud computing has been surprisingly slow and seen more…

Dissecting Mr. Robot TV Series: Spotlight On Burning Online Privacy Risks

Dissecting Mr. Robot TV Series: Spotlight On Burning Online Privacy Risks

Mr. Robot And Burning Online Privacy Risks Despite the rapid development of web tools and computer security systems, online privacy remains a serious issue for most web users. According to some statistics provided by isaca.org, the total number of online security incidents worldwide grew to 42.8 million, leaving a great number of victims behind. As one…

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Advertising