Venture firm Kleiner Perkins banking on the cloud to pay big dividends
Startups selling cloud services and that are looking for venture funding may soon have a new option: venture firm Kleiner Perkins Caufield & Byers, which backed Zynga and Groupon, has "talked about it, and are intrigued by the idea," according to Bloomberg.
The company is considering investing up to $100 million in the segment. It has already invested $20 million in AppDynamics and poured $100 million into the segment last year. Cloud services are expected to see a CAGR of 30 and reach $270 billion by 2020.
"Companies' comfort level and willingness to adopt the cloud is hitting an acceleration point," said Matt Murphy, a partner in the firm. "Now's the most interesting time in the last 10 years to be investing in enterprise-based companies."
Cloud services has become a buzzword in the past few months with investment and M&A activity in the segment picking up. On Thursday, Oracle offered the Internet-based human-resources software company Taleo $1.9 billion for its business. The acquisition will help Oracle better position itself in the booming cloud services market. In January, Oracle acquired RightNow for $1.5 billion.
- see this Bloomberg article