Greylock expands Fund XIII, launches growth fund

Venture firm Greylock Partners has expanded its thirteenth fund to $1bn and has formed Greylock Growth, a later stage strategy, says partner David Sze.

Silicon Valley-headquartered venture firm Greylock Partners has expanded its thirteenth fund from $575 million to $1 billion.

All of Fund XIII’s additional capital was raised from existing limited partners. Greylock originally closed the fund, which focuses on investments in consumer technology, services and tech infrastructure, in November 2009. Limited partners in the fund include the Princeton University Investment company as well as the Harvard, Duke and Stanford endowments.

Greylock has also formed Greylock Growth, a fund focused on later state financings in 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,” Greylock partner David Sze said in a statement. “With Greylock Growth, we plan to invest $25 million to $200 million at a time,” Sze said.

Since Greylock’s investment in Facebook in 2006, roughly 40 percent of the firm’s capital has invested in later stage businesses.

Greylock has invested in some of the biggest names in social networking technology, including social networking site Facebook and LinkedIn. The firm also has made investments in internet music site Pandora and car rental service ZipCar.

Greylock also invests a “Discovery Fund”, which was launched in September 2010 has completed 20 seed stage investments to date. Discovery Fund investments range between $25,000 and $500, 000.

Greylock was founded in 1965 by the late Bill Elfers, who had worked at American Research & Development, one of the pioneering venture firms in the US.  More than 150 of Greylock’s portfolio companies have gone on to IPOs and more than 100 have gone on to profitable M&A events.

In April 2010, the 10-year returns for venture capital dipped into negative figures, according to Thomson Reuters’ US Private Equity Performance Index.