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Original poster
Apr 12, 2001
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141235-kpcb_logo.jpg


Venture capital firm Kleiner Perkins Caufield & Byers (KPCB) today announced that it is doubling the size of its "iFund" supporting iPhone OS-related companies to $200 million. The original iFund was launched in March 2008[/url], and KPCB notes that the initial $100 million has been fully committed to 14 companies that have also attracted an additional $330 million in funding.
KPCB also announced iFund-supported companies have more than 20 applications in development for the soon-to-be-released iPad, with 11 available at first ship on April 3. KPCB noted the iPhone has created an inflection in mobile content consumption and the iPad will lead the next wave of innovation in mobile computing. The iFund is increasing its investment dollars to back entrepreneurs and build companies that focus on these areas. Particular areas of interest on iPad include entertainment, communication, social networking, commerce, health care, and education.
Going forward, KPCB expects all ventures it supports through the fund to offer an iPad component to their plans.
"Kleiner Perkins has done a terrific job at finding, funding and supporting great iPhone app developers," said Steve Jobs, Apple's CEO. "We are thrilled that they are doubling the size of their fund, along with expanding it to now include iPad developers too."
According to today's announcement, the initial batch of iFund awardees, which includes such companies as ngmoco and Shazam, has generated over 100 million downloads of their mobile applications with over $100 million in revenue in 2010 alone.

Article Link: Kleiner Perkins Doubles iFund to $200 Million, Focuses on iPad
 

carmenodie

macrumors 6502a
Apr 25, 2008
775
0
OMFG!
I'm getting the 64 gig wifi+3G ipad. I got a promotion in the hotel and that bad boy/girl is going to be sidekick!!!!
 

sishaw

macrumors 65816
Jan 12, 2005
1,147
19
I wouldn't think a venture capital firm would put money into something unless there is a substantial possibility of a return on their investment. Which means far better minds than mine think that the iPhone/iPad ecosystem is going to grow and continue to be profitable, or even become more profitable.
 

francisq

macrumors member
Mar 22, 2010
77
0
I wouldn't think a venture capital firm would put money into something unless there is a substantial possibility of a return on their investment. Which means far better minds than mine think that the iPhone/iPad ecosystem is going to grow and continue to be profitable, or even become more profitable.

the original iFund 2 yrs ago for the iPhone was $100M and obviously they made a great decision back then.
 

iDisk

macrumors 6502a
Jan 2, 2010
825
0
Menlo Park, CA
Steve Jobs quote in the article, took the words right out of my mouth. Nothing else to say regarding this.

Except for, we need more like KPCB.
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
I wouldn't think a venture capital firm would put money into something unless there is a substantial possibility of a return on their investment. Which means far better minds than mine think that the iPhone/iPad ecosystem is going to grow and continue to be profitable, or even become more profitable.

Elevation Partners. Geniuses! ;)
 

HiRez

macrumors 603
Jan 6, 2004
6,048
2,063
Western US
I'm sure it's negotiable, but what's a typical percentage these guys take? 10%? 40%? Do they own a percentage of your whole company, or only the specific products they fund?
 

PBG4 Dude

macrumors 68040
Jul 6, 2007
3,709
3,527
I'm sure it's negotiable, but what's a typical percentage these guys take? 10%? 40%? Do they own a percentage of your whole company, or only the specific products they fund?

They buy a percentage of your company, and you use that money to grow your business. Hopefully you become big enough for the VC firm to do an IPO and they make $$$$$$$$$$.
 

Tilpots

macrumors 601
Apr 19, 2006
4,192
71
Carolina Beach, NC
Whatever happened to their first ifunded app, icontrol? It never launched.


Not sure but there is a picture of an iPhone on their homepage in the Flash graphic???

EDIT: Maybe this is why...
iControl, which markets its advantage mostly in terms of security, will also give homeowners granular control of their energy use. The company won't sell directly to consumers--just to broadband providers, who will in turn package the products into their service suites. But once these services start rolling out, count on some of the energy cost savings to offset the monthly subscription price.
 

pcp_ip

macrumors regular
Nov 12, 2002
120
1
Not sure but there is a picture of an iPhone on their homepage in the Flash graphic???

They won the initial ifund financing (one of the 2 first ifund apps) in May 2008. They've produced nothing, despite claims their app would launch in Q1/09.

When they won their $15.5 million ifund funding they produced a consumer purchasable automation system: http://store.icontrol.com/. That new direction of only selling to broadband providers didn't exist when they received funding.

Which broadband providers use icontrol iphone apps to control your HVAC and automate your home security? None that I know of.
 

jpyc7

macrumors 6502
Mar 8, 2009
276
0
Denver, CO
I'm sure it's negotiable, but what's a typical percentage these guys take? 10%? 40%? Do they own a percentage of your whole company, or only the specific products they fund?

For early startups, it will probably be more than 50% (and/or they will negotiate sufficient control) such that they can force out the founders. For companies that aren't in their first round of funding, I suspect it is quite variable.

I don't know about since the dot-com bust, but around then employees as a group got 15%, CEOs up to 10%, and other C-level executives are getting at least 1%. Founders probably keep at least 5% and if they are serial founders it is probably more (because they have experience creating a company).
 

sishaw

macrumors 65816
Jan 12, 2005
1,147
19
They won the initial ifund financing (one of the 2 first ifund apps) in May 2008. They've produced nothing, despite claims their app would launch in Q1/09.

When they won their $15.5 million ifund funding they produced a consumer purchasable automation system: http://store.icontrol.com/. That new direction of only selling to broadband providers didn't exist when they received funding.

Which broadband providers use icontrol iphone apps to control your HVAC and automate your home security? None that I know of.

And so what? It's the nature of venture capital to take risks, and not all risky investments work out. If you look at Kleiner, Perkins Wikipedia page, though, they have a lot of successful ones. I'm not understanding all the focus on negativity here.
 

sishaw

macrumors 65816
Jan 12, 2005
1,147
19
And so nothing.

Just pointing out that the expansion of the ifund does not mean more wonderful apps are coming. As you said, "not all risky investments work out."

It will fund more businesses creating apps, and increase the overall chances of excellent apps. That's my point. You're just focusing on one counterexample. Well, I could focus on Shazam, which I would consider an excellent app.

Whatever. Dwell in your swamp of negativity. I think we're looking at a bright future here. Time will tell.
 
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