Venture firm Benchmark raises new fund without early Uber investor – source

Benchmark Ventures

The Silicon Valley venture capital firm known for its early backing of companies such as eBay is raising a new fund, but without one of its most prominent general partners, a source close to the firm said on Wednesday. 

Benchmark is raising a $425 million 10th fund, the person said, after a long track record of early backing for major tech businesses such as Uber Technologies and Twitter Inc.

But influential general partner Bill Gurley, who led the firm’s early investment in Uber, one of the largest technology companies to emerge in the past decade, will not be part of the new fund, the person said.

The Wall Street Journal reported the development earlier on Wednesday.

Gurley has been a vocal advocate for direct listings, an alternative way for companies to become publicly traded that gives both early investors such as Benchmark and tech company employees paid with stock a way to sell their shares for cash while paying potentially fewer fees to investment banks.

Spotify Technology SA and Slack Technologies Inc – neither of which was a Benchmark investment – used the technique, but Uber held a traditional initial public offering last year.

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Another source close to Benchmark said Gurley was not “going anywhere.” He will remain on 11 boards of Benchmark portfolio companies and will work with the firm and the founders of those startups for “many, many years into the future,” the source said.

The sources declined to say why Gurley was not joining the latest fund.

The team at Platform Executive hope you have enjoyed the ‘Venture firm Benchmark raises new fund without early Uber investor – source‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Jane Lanhee Lee in Sedona, Arizona. Editing by Stephen Nellis and Peter Cooney.

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