Get rich on Google

Startup success stories and the investors in them. How Kleiner Perkins Caufield & Byers got rich on Google

#PRE-IPO

#ВЕНЧУР

#ВЕНЧУР

final yield

All invested:

$12.5 million each

Share in the company after the IPO:

Yield:

$4.3 billion each

30 000%

In 1999, Google raised $12.5 million each from Kleiner Perkins Caufield & Byers and Sequoia Capital in a Series B round. A year after Google's IPO in 2004, the two investors' shares were worth about $4.3 billion each - 300 times earnings.

ENTERTAINMENT

SUCCESS STORY

The recipe for success for Kleiner Perkins Caufield & Byers and Sequoia Capital was management buy-in and unwavering confidence in their choice. Part of the terms of Kleiner Perkins' entry into the deal was that Google co-founders Larry Page and Sergey Brin bring in an outside CEO to run the company.
They initially refused, and the deal almost fell apart because Kleiner Perkins partner John Doerr wanted out of the deal, but he was the one who eventually convinced the founders that they needed a CEO.
They invested in Google in 1999, while the IPO took place as late as 2004 - during which period the Nasdaq index peaked and then plummeted fourfold. Kleiner Perkins and Sequoia survived the turmoil and waited for Google's IPO despite everything. By 2004, Google had become a $23 billion company - an absolutely astronomical sum at the time.

By 2004, Google had become a $23 billion company - an absolutely astronomical sum for the time.