Kleiner Perkins Seeks Follow-on Funds for Green Growth Startups


kpcb-logoVenture capital firm Kleiner Perkins has reopened its $500 million Green Growth and $700 million KPCB XIII funds, reaching out to investors for extra cash to support already-backed companies through the economic downturn, peHub reports.

The firm will reportedly allow both new and previous investors, an unusual step for a firm that generally has oversubscribed funds — and a sign that (a) Kleiner Perkins expects exits to be scarce in the next several years, (b) investors are opting for more conservative plays in a time of financial turmoil, (c) university endowments and automakers, which rank among Kleiner Perkins biggest investors, are increasingly strapped for cash, or most likely (d) some combination of the above.

Boosting the Green Growth and KPCB XIII funds could be especially important for clean energy startups in the firm’s portfolio, including geothermal developer Altarock Energy, ethanol and biodiesel maker Altra Biofuels, utility-scale solar thermal company Ausra and fuel-cell maker Bloom Energy. The companies, along with KPCB-backed plug-in hybrid car startup Fisker Automotive, are working on technologies with long development cycles and massive upfront costs — characteristics that might otherwise spell doom in an extended credit squeeze.

Comments are closed.