Kleiner Perkins, or KPCB, is one of the most prestigious and successful venture capital firms in Silicon Valley. Founded in 1972, Kleiner Perkins has backed pioneering companies like Amazon, Google, Twitter, Spotify and many more. Many investors are interested in gaining exposure to Kleiner Perkins’ investment portfolio. However, as a private partnership, shares of Kleiner Perkins itself are not available to regular investors. This article explores different ways investors can get exposure to Kleiner Perkins’ deals.
Invest in Kleiner Perkins portfolio companies once they IPO
The most direct way for investors to benefit from Kleiner Perkins’ investments is to invest in their portfolio companies once they go through an initial public offering (IPO). For example, investors could have purchased Amazon stock after its IPO in 1997 or Google stock after its IPO in 2004. Comparing Kleiner Perkins’ entire portfolio before and after IPO provides a glimpse into the growth potential. Investing post-IPO does mean missing out on some early rapid growth though.
Invest in Kleiner Perkins venture funds as LP
Wealthy accredited investors can seek to invest directly in Kleiner Perkins’ venture capital funds as a limited partner (LP). This allows investors to get exposure to Kleiner Perkins’ investments early before any IPO. However, these funds come with high minimums, often in the millions of dollars. There is also less liquidity compared to public stocks.
Research trends that Kleiner Perkins focuses investment on
Rather than invest directly in Kleiner Perkins’ deals, another option is to research the technology trends and sectors that the firm focuses its investments on. For example, identifying that Kleiner Perkins made early bets in genomics, AI and consumer internet allows an investor to find public companies operating in those high-growth areas.
Wait for Kleiner Perkins public equity fund IPO
There have been rumors of Kleiner Perkins looking to launch a publicly traded fund to allow broader investor access to its deals. For example, VC firm Ribbit Capital recently filed for a $300 million IPO of its venture funds. If Kleiner Perkins takes a similar path, it would give public market investors a vehicle to invest alongside the prominent VC firm.
While not directly investable for most investors, Kleiner Perkins’ success and focus on backing transformational companies across technology mean that opportunities exist for investors to access similar high-growth investment exposure.