FILE PHOTO: Bill Gurley, General Partner at Benchmark, presents throughout the 2018 Sohn Investment Conference in New York City, U.S., April 23, 2018. REUTERS/Brendan McDermid/File Photo
(Reuters) – The Silicon Valley enterprise capital agency recognized for its early backing of firms corresponding to Uber Technologies Inc is elevating a brand new fund, however with out one among its most outstanding basic companions, a supply near the agency stated on Wednesday.
Benchmark is elevating a $425 million 10th fund, the particular person stated, after an extended monitor document of early backing for main tech companies corresponding to eBay Inc and Twitter Inc.
But influential basic accomplice Bill Gurley, who led the agency’s early funding in Uber, one of many largest tech firms to emerge prior to now decade, is not going to be a part of the brand new fund, the particular person stated.
The Wall Street Journal reported the event earlier on Wednesday.
Gurley has been a vocal advocate for direct listings, an alternate approach for firms to grow to be publicly traded that offers each early traders corresponding to Benchmark and tech firm staff paid with inventory a strategy to promote their shares for money whereas paying doubtlessly fewer charges to funding banks.
Spotify Technology SA and Slack Technologies Inc – neither of which was a Benchmark funding – used the approach, however Uber held a standard preliminary public providing final yr.
Another supply near Benchmark stated Gurley was not “going anywhere.” He will stay on 11 boards of Benchmark portfolio firms and can work with the agency and the founders of these startups for “many, many years into the future,” the supply stated.
The sources declined to say why Gurley was not becoming a member of the most recent fund.
Reporting by Jane Lanhee Lee in Sedona, Arizona; Editing by Stephen Nellis and Peter Cooney