Source - http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.723.6880&rep=rep1&type=pdf
TL;DR - Eugene Kleiner and the rest of the “traitorous eight” set a precedent of active investing and entrepreneurial backgrounds in the VC space.
Helpfulness - 3
Tags - notable investors, early vc, kleiner perkins
Questions addressed:
- Who was Eugene Kleiner?
- What impact did Kleiner and his early colleagues have on the VC industry?
- How important is entrepreneurial experience for VC partners?
Summary:
- Eugene Kleiner was an engineer and entrepreneur prior to founding Kleiner Perkins.
- Prior to this, many investors had had finance backgrounds rather than business / entrepreneurship experience.
- Other members of the so-called “traitorous eight” left Shockley along with Kleiner to found Fairchild Semiconductor.
- Are these early examples indicative of the human capital that successful VCs need to provide?
- Partners should add value beyond the financial aspect.
- VC partners with industry experience are more active as investors than partners with only a finance background.
- This is important because active investment is a key component of the VC value-add.
- It is also a significant finding for international VC because industry experience is sometimes harder to come across than finance experience in non-US areas.
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