Eugene Kleiner
Encyclopedia
Eugene Kleiner was one of the original founders of Kleiner Perkins, the Silicon Valley
venture capital
firm which later became Kleiner Perkins Caufield & Byers.
The company was an early investor in more than 300 information technology and biotech firms, including Amazon.com
, AOL
, Brio Technology
, Electronic Arts
, Flextronics
, Genentech
, Google
, Hybritech, Intuit, Lotus Development, LSI Logic, Macromedia
, Netscape, Quantum, Segway
, Sun Microsystems
and Tandem
.
In 1938, he fled with his family from Vienna
, Austria, arriving in New York two years later. He served in the U.S. Army, then earned a Bachelor's degree
in mechanical engineering
from the Polytechnic University of New York
in 1948 and a Master's degree
in industrial engineering
from New York University
. After briefly teaching engineering, he joined Western Electric
, the manufacturing arm of AT&T
.
In 1947, he married the former Rose Wassertheil (died 2001), a Polish émigrée. They had two children, Robert and Lisa.
In 1956, he was among the first to accept an offer from William Shockley
to come to California
to help form what became Shockley Semiconductor Laboratory. In 1957, he and seven colleagues (the "Fairchild Eight", whom Shockley dubbed the "Traitorous Eight
") left to found Fairchild Semiconductor
, which most historians mark as the first major spin-off
of what later was called Silicon Valley. According to fellow VC Arthur Rock
, Kleiner led the Eight, obtaining a $1.5 million investment from Sherman Fairchild
and taking over the new firm's administrative duties.
Kleiner later invested his own money in Intel, a semiconductor firm founded in 1968 by fellow Fairchild founders Robert Noyce
and Gordon Moore
.
In 1972 he joined Hewlett-Packard
veteran Tom Perkins
to found Kleiner Perkins, the venture capital firm now headquartered on Sand Hill Road
. In 1977, the company added Brook Byers
and Frank J. Caufield
as named partners. He retired from day-to-day responsibilities in the early 1980s.
Silicon Valley
Silicon Valley is a term which refers to the southern part of the San Francisco Bay Area in Northern California in the United States. The region is home to many of the world's largest technology corporations...
venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
firm which later became Kleiner Perkins Caufield & Byers.
The company was an early investor in more than 300 information technology and biotech firms, including Amazon.com
Amazon.com
Amazon.com, Inc. is a multinational electronic commerce company headquartered in Seattle, Washington, United States. It is the world's largest online retailer. Amazon has separate websites for the following countries: United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and...
, AOL
AOL
AOL Inc. is an American global Internet services and media company. AOL is headquartered at 770 Broadway in New York. Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services...
, Brio Technology
Brio Technology
Brio Technology was a San Francisco Bay area software company cofounded in 1984 by Yorgen Edholm and Katherine Glassey. The company is best known for their business intelligence software systems, starting with DataPivot on the Apple Macintosh. Brio Software was acquired by Hyperion in 2003...
, Electronic Arts
Electronic Arts
Electronic Arts, Inc. is a major American developer, marketer, publisher and distributor of video games. Founded and incorporated on May 28, 1982 by Trip Hawkins, the company was a pioneer of the early home computer games industry and was notable for promoting the designers and programmers...
, Flextronics
Flextronics
Flextronics International Ltd. is an electronics manufacturing services provider that offers services to original equipment manufacturers . It also provides supporting supply chain services, including packaging and transportation throughout the world, as well as design and after-sales...
, Genentech
Genentech
Genentech Inc., or Genetic Engineering Technology, Inc., is a biotechnology corporation, founded in 1976 by venture capitalist Robert A. Swanson and biochemist Dr. Herbert Boyer. Trailing the founding of Cetus by five years, it was an important step in the evolution of the biotechnology industry...
Google
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...
, Hybritech, Intuit, Lotus Development, LSI Logic, Macromedia
Macromedia
Macromedia was an American graphics and web development software company headquartered in San Francisco, California that produced such products as Flash and Dreamweaver. Its rival, Adobe Systems, acquired Macromedia on December 3, 2005 and controls the line of Macromedia...
, Netscape, Quantum, Segway
Segway Inc.
Segway Inc. of New Hampshire, USA is the manufacturer of a two-wheeled, self-balancing electric vehicle, the Segway PT, invented by Dean Kamen...
, Sun Microsystems
Sun Microsystems
Sun Microsystems, Inc. was a company that sold :computers, computer components, :computer software, and :information technology services. Sun was founded on February 24, 1982...
and Tandem
Tandem
Tandem is an arrangement where a team of machines, animals or people are lined up one behind another, all facing in the same direction....
.
In 1938, he fled with his family from Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
, Austria, arriving in New York two years later. He served in the U.S. Army, then earned a Bachelor's degree
Bachelor's degree
A bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for three or four years, but can range anywhere from two to six years depending on the region of the world...
in mechanical engineering
Mechanical engineering
Mechanical engineering is a discipline of engineering that applies the principles of physics and materials science for analysis, design, manufacturing, and maintenance of mechanical systems. It is the branch of engineering that involves the production and usage of heat and mechanical power for the...
from the Polytechnic University of New York
Polytechnic University of New York
The Polytechnic Institute of New York University, often referred to as Polytechnic Institute of NYU, NYU Polytechnic, or NYU-Poly, is the engineering and applied sciences affiliate of New York University...
in 1948 and a Master's degree
Master's degree
A master's is an academic degree granted to individuals who have undergone study demonstrating a mastery or high-order overview of a specific field of study or area of professional practice...
in industrial engineering
Industrial engineering
Industrial engineering is a branch of engineering dealing with the optimization of complex processes or systems. It is concerned with the development, improvement, implementation and evaluation of integrated systems of people, money, knowledge, information, equipment, energy, materials, analysis...
from New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
. After briefly teaching engineering, he joined Western Electric
Western Electric
Western Electric Company was an American electrical engineering company, the manufacturing arm of AT&T from 1881 to 1995. It was the scene of a number of technological innovations and also some seminal developments in industrial management...
, the manufacturing arm of AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
.
In 1947, he married the former Rose Wassertheil (died 2001), a Polish émigrée. They had two children, Robert and Lisa.
In 1956, he was among the first to accept an offer from William Shockley
William Shockley
William Bradford Shockley Jr. was an American physicist and inventor. Along with John Bardeen and Walter Houser Brattain, Shockley co-invented the transistor, for which all three were awarded the 1956 Nobel Prize in Physics.Shockley's attempts to commercialize a new transistor design in the 1950s...
to come to California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
to help form what became Shockley Semiconductor Laboratory. In 1957, he and seven colleagues (the "Fairchild Eight", whom Shockley dubbed the "Traitorous Eight
Traitorous Eight
The Traitorous Eight, as they became known, are eight men who left Shockley Semiconductor Laboratory to form Fairchild Semiconductor in 1957. More neutral terms include the "Fairchild Eight" and the "Shockley Eight." They have sometimes been called "Fairchildren," although this term has been also...
") left to found Fairchild Semiconductor
Fairchild Semiconductor
Fairchild Semiconductor International, Inc. is an American semiconductor company based in San Jose, California. Founded in 1957, it was a pioneer in transistor and integrated circuit manufacturing...
, which most historians mark as the first major spin-off
Research spin-off
A research spin-off is a company that falls into at least one of the four following categories:#Companies that have an equity investment from a national library or university#Companies that license technology from a public research institute or university...
of what later was called Silicon Valley. According to fellow VC Arthur Rock
Arthur Rock
Arthur Rock is an American venture capitalist of Silicon Valley, California. He was an early investor in major firms including Intel, Apple Computer, Scientific Data Systems and Teledyne....
, Kleiner led the Eight, obtaining a $1.5 million investment from Sherman Fairchild
Sherman Fairchild
Sherman Mills Fairchild was an inventor and serial entrepreneur who founded over 70 companies namely Fairchild Aircraft, Fairchild Industries, Fairchild Aviation Corporation and Fairchild Camera and Instrument. Fairchild made significant contributions to the aviation industry and was inducted into...
and taking over the new firm's administrative duties.
Kleiner later invested his own money in Intel, a semiconductor firm founded in 1968 by fellow Fairchild founders Robert Noyce
Robert Noyce
Robert Norton Noyce , nicknamed "the Mayor of Silicon Valley", co-founded Fairchild Semiconductor in 1957 and Intel in 1968...
and Gordon Moore
Gordon Moore
Gordon Earle Moore is the co-founder and Chairman Emeritus of Intel Corporation and the author of Moore's Law .-Life and career:...
.
In 1972 he joined Hewlett-Packard
Hewlett-Packard
Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, USA that provides products, technologies, softwares, solutions and services to consumers, small- and medium-sized businesses and large enterprises, including...
veteran Tom Perkins
Tom Perkins
Thomas James Perkins is an American businessman, capitalist, and was one of the founders of leading venture capital firm Kleiner Perkins Caufield & Byers.-Biography:...
to found Kleiner Perkins, the venture capital firm now headquartered on Sand Hill Road
Sand Hill Road
Sand Hill Road is a road in Menlo Park, California, notable for its concentration of venture capital companies. Its significance as a symbol of private equity in the United States may be compared to that of Wall Street in the stock market...
. In 1977, the company added Brook Byers
Brook Byers
Brook Byers is a senior partner at Kleiner Perkins Caufield & Byers and the brother of Stanford University Professor Tom Byers and Atlanta, Georgia engineering entrepreneur ....
and Frank J. Caufield
Frank J. Caufield
Frank J. Caufield is best known as a co-founder of the venture capital firm Kleiner Perkins Caufield & Byers, based in Menlo Park, California....
as named partners. He retired from day-to-day responsibilities in the early 1980s.
Noted quotes
- There is a time when panic is the appropriate response.
Kleiner’s Laws
- Make sure the dog wants to eat the dog food. No matter how ground-breaking a new technology, how large a potential market, make certain customers actually want it.
- Build one business at a time. Most business plans are overly ambitious. Concentrate on being successful in one endeavor first.
- Risk up front, out early.
- The time to take the tarts is when they're being passed.
- The problem with most companies is they don't know what business they're in.
- Even turkeys can fly in a high wind. In times of strong economies, even bad companies can look good.
- It's easier to get a piece of an existing market than to create a new one.
- It's difficult to see the picture when you're inside the frame.
- After learning some of the tricks of the trade, some people think they know the trade. This reflected some of Eugene's own humility; he recognized that many venture capitalists thought they were experts when they had just a bit of knowledge.
- Venture capitalists will stop at nothing to copy success.
- Invest in people, not just products. Eugene always respected founding entrepreneurs. He wanted to build companies with them not just with their ideas.