University of California Returns Show Kleiner and Sequoia Are Fallible, Too (Slideshow)

Few venture firms are more storied than Sequoia Capital and Kleiner Perkins Caufield & Byers.

But after several hugely successful funds in the mid 1990s, both firms saw late dot-com era funds run afoul of bubble-year challenges.

The data for this observation come from the venture portfolio of the University of California. The university’s board of regents invested in five Kleiner funds and five Sequoia funds from 1992 to 2000.

The now 11- and 12-year-old funds show decidedly negative IRRs, based on the data updated through December.

To be fair, Kleiner and Sequoia have plenty of company. The regents invested in eight 1999 funds, but only one has a positive IRR. Likewise it invested in seven 2000 vintage funds, but only one has a positive IRR. Of the funds with negative IRRs, Kleiner and Sequoia rank at or close to the bottom of the list.

The university’s early Kleiner funds are Kleiner Perkins Caufield & Byers VI, VII and VIII, all early stage funds ranging from $173 million to $310 million in size, according to data from Thomson Reuters, publisher of this blog.

The university’s dot-com era funds are Kleiner Perkins Caufield & Byers IX-A, a $504.63 million early stage fund from 1999, and X-A, a balanced stage fund from 2000.

Sequoia Capital VII and VIII are the earliest Sequoia funds in the university’s portfolio. Those funds date from 1996 and 1998, and range from $150 million to $250 million in size. Sequoia Capital Franchise Fund is a $350 million later stage fund from 1999, and Sequoia Capital IX is an early stage 1999 fund of $351.3 million, according to Thomson Reuters. Sequoia Capital X is a vintage 2000 early stage fund of $695.1 million.

The regents made no more recent commitments because Kleiner and Sequoia likely barred it from investing in their funds due to public performance disclosure requirements.

What follows is a slideshow highlighting performance and other details of the Kleiner and Sequoia funds. Slides No. 1 through 5 focus on Kleiner, and slides No. 6 through 10 focus on Sequoia.

All industry average IRR data are from Thomson Reuters.

[slideshow]

[slide title=”Kleiner Perkins Caufield & Byers VI”]

Vintage: 1992

Stage: Early

Fund Size: $173 million

Commitment: $15 million

Cap In: $15 million

Cap Out: $49.3 million

Portfolio NAV: $677,000

IRR: 39%

Industry Average IRR for 1992: 27.84%

[slide title=”Kleiner Perkins Caufield & Byers VII”]

Vintage: 1994

Stage: Early

Fund Size: $280 million

Commitment: $20 million

Cap In: $15 million

Cap Out: $483 million

Portfolio NAV: $4.7 million

IRR: 121%

Industry Average IRR for 1994: 26.90%

[slide title=”Kleiner Perkins Caufield & Byers VIII”]

Vintage: 1996

Stage: Early

Fund Size: $310 million

Commitment: $20 million

Cap In: $20 million

Cap Out: $330 million

Portfolio NAV: $10 million

IRR: 286.6%

Industry Average IRR for 1996: 66.94%

[slide title=”Kleiner Perkins Caufield & Byers IX-A”]

Vintage: 1999

Stage: Early

Fund Size: $504.63 million

Commitment: $20 million

Cap In: $17 million

Cap Out: $0

Portfolio NAV: $6.9 million

IRR: -23.3%

Industry Average IRR for 1999: -4.59%

[slide title=”Kleiner Perkins Caufield & Byers X-A”]

Vintage: 2000

Stage: Balanced

Fund Size: Not Available

Commitment: $20 million

Cap In: $9.5 million

Cap Out: $0

Portfolio NAV: $5.6 million

IRR: -17.5%

Industry Average IRR for 2000: -1.59%

[slide title=”Sequoia Capital VII”]

Vintage: 1995

Stage: Early

Fund Size: $150 million

Commitment: $13 million

Cap In: $13 million

Cap Out: $197 million

Portfolio NAV: $16.3 million

IRR: 174.5%

Industry Average IRR for 1995: 44.34%

[slide title=”Sequoia Capital VIII”]

Vintage: 1998

Stage: Early

Fund Size: $250 million

Commitment: $16 million

Cap In: $16 million

Cap Out: $33.5 million

Portfolio NAV: $7 million

IRR: 90.4%

Industry Average IRR for 1999: 25.74%

[slide title=”Sequoia Capital Franchise Fund”]

Vintage: 1999

Stage: Later

Fund Size: $350 million

Commitment: $22 million

Cap In: $16.3 million

Cap Out: $6 million

Portfolio NAV: $5.6 million

IRR:-17%

Industry Average IRR for 1999: -4.59%

[slide title=”Sequoia Capital IX”]

Vintage: 1999

Stage: Early

Fund Size: $351.3 million

Commitment: $18 million

Cap In: $15.4 million

Cap Out: $9.3 million

Portfolio NAV: $3.9 million

IRR: -6.1%

Industry Average IRR for 1999: -4.59%

[slide title=”Sequoia Capital X”]

Vintage: 2000

Stage: Early

Fund Size: $695.1 million

Commitment: $28 million

Cap In: $17.5 million

Cap Out: $379,000.00

Portfolio NAV: $9.2 million

IRR: -31%

Industry Average IRR for 2000: -1.59%

[/slideshow]