Greylock Partners Expands U.S. Fund XIII to $1 Billion, Announces Greylock Growth
Menlo Park, CA, March 1, 2011—Greylock Partners, a Silicon Valley venture capital firm, today announced the expansion of Greylock XIII to $1 billion. The expansion capital was raised entirely with existing limited partners and was oversubscribed. In addition, Greylock announced the formation of Greylock Growth, a fund focused on later stage financings in breakout consumer Internet and enterprise companies.
“Greylock Growth is the next phase of an explicit later stage strategy put in place five years ago with our initial investment in Facebook,” says David Sze, Partner at Greylock and leader of the growth initiative. “The deep operational and entrepreneurial backgrounds of our investing team have always been valued by entrepreneurs seeking to build 'winner's circle' companies. As the Internet has evolved it has become increasingly clear that continuous product innovation is critical to a company's success, whether it is a seed stage start-up or an independent, industry-leading business. With Greylock Growth, we plan to invest $25 million to $200 million at a time to help companies in the 'winner's circle' maintain their dominant positions while they continue to grow and expand.”
Since Greylock's initial Facebook investment in early 2006, approximately 40% of the firm's dollars have gone toward later stage companies. This portfolio includes companies such as Constant Contact, Groupon, Pandora, Redfin and Zipcar. Pandora and Zipcar are currently in registration with the Securities and Exchange Commission.
Greylock Partners initially closed $575 million for Greylock XIII in November 2009. The firm is an investor in a number of early stage companies through this fund, including Airbnb, One Kings Lane, Pure Storage, Rally Software and Shopkick.
Greylock Discovery Fund has completed 20 seed stage investments since it was launched in September 2010. Investments from this fund range between $25,000 and $500,000 and do not require the extensive diligence and partnership approval process that accompanies a traditional Series A financing. Greylock Discovery Fund is managed by Reid Hoffman, Partner at Greylock and Co-Founder and Executive Chairman of Greylock portfolio company LinkedIn, also in registration with the Securities and Exchange Commission.
“With the Greylock Discovery Fund for angel deals, Greylock XIII for early stage deals, and now Greylock Growth for later stage deals, we can actively partner with entrepreneurs across all stages of a company's life,” says Reid Hoffman.
“Greylock Growth positions Greylock Partners to build on its long history of backing attractive growth companies and working with them to enhance their prospects for success,” says David Swensen, Chief Investment Officer at Yale University. “In structuring the new fund, Greylock maintains its strong tradition of promoting alignment of interests with the firm's limited partners. Having benefited from Greylock's top-tier returns for more than two decades, Yale University looks forward to continuing its long standing and extremely productive relationship with Greylock Partners.”
About Greylock Partners
Greylock partners with entrepreneurs to help them build market-leading businesses. Over the past 45 years the firm has worked with hundreds of companies, 150 of which have gone on to IPOs and 100 of which have gone on to profitable M&A events. Such companies include Ascend Communications, CheckFree, Constant Contact, Continental Cable, Decru, Data Domain, DoubleClick, Internet Security Systems, Legato, Media Metrix, Millennium Pharmaceuticals, Openwave, Open Market, OutlookSoft, Polyserve, Red Hat, RightNow Technologies, Success Factors, Tellabs, Trilogy and Wily Technology. Current Greylock portfolio companies include Apptio, Cloudera, Data Robotics, Facebook, Groupon, Imperva, LinkedIn, One Kings Lane, Palo Alto Networks, Pandora, Picarro, Redfin, Workday and ZipCar.
For more information about Greylock Partners, visit our Web site (http://www.greylock.com) or blog (http://www.greylockvc.com) or follow us on Facebook (http://www.facebook.com/greylock) or Twitter (@greylockvc).