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Benchmark (venture capital firm)

{{short description|American venture capital firm}}

{{Use mdy dates|date= November 2015}}

{{Infobox company

| name = Benchmark

| logo = Benchmark logo.jpg

| type = Private

| industry = Venture capital

| foundation = {{start date and age|1995}}

| founder = Bob Kagle
Bruce Dunlevie
Andy Rachleff
Kevin Harvey
Val Vaden

| location = 140 New Montgomery
San Francisco, California, United States

| key_people = Peter Fenton, General Partner
Eric Vishria, General Partner
Chetan Puttagunta, General Partner
Sarah Tavel, General Partner
Victor Lazarte, General Partner

| assets =

| num_employees =

| homepage = {{URL|https://www.benchmark.com/}}

| footnotes =

}}

Benchmark is a venture capital firm founded in 1995 by Bob Kagle, Bruce Dunlevie, Andy Rachleff, Kevin Harvey, and Val Vaden. The firm is known for its equal partnership structure and focus on early-stage investing, typically leading the first institutional round of funding while taking a board seat with each company it invests in.

Founding, partner structure

Benchmark was founded in 1995 by five partners: Bob Kagle,{{cite news |last=Aragon |first=Lawrence |title=Where are they now: Bob Kagle |url=https://www.venturecapitaljournal.com/where-are-they-now-bob-kagle/ |work=Venture Capital Journal |date=6 July 2020}} Bruce Dunlevie, Andy Rachleff, Kevin Harvey,{{cite news|url=https://www.bloomberg.com/news/articles/2015-03-20/venture-capitalist-bottles-california-pinots-that-rival-burgundy|title=Venture capitalist bottles California pinots that rival Burgundy|website=Bloomberg|date=20 March 2015 }} and Val Vaden.{{cite news |last=Meikle |first=Brad |title=Vector Capital Goes On WIthout Co-founder |url=https://www.buyoutsinsider.com/vector-capital-goes-on-without-co-founder/ |work=Buyouts Insider |date=1 December 2003}} The firm is noted for creating the first equal ownership and compensation structure for its partners,{{cite book | last=Stross | first=Randall | title=eBoys: The First Inside Account of Venture Capitalists at Work | publisher=Ballantine Books (May 29, 2001) | date=2009-12-29 | page=89 | isbn=978-0-345-42889-9 }} where there are no "junior partners" or "senior partners," and there are also no CEO-like position held,{{Cite news|url=https://www.forbes.com/sites/alexkonrad/2015/03/25/benchmark-makes-other-firms-look-outmatched/ |title=The Benchmark Way: Five Partners Who Make Other VC Firms Look Outgunned And Overstaffed| last=Konrad|first=Alex| work=Forbes| date=March 25, 2015}} differing from other VC firms which are named for their founders and are structured hierarchically.{{cite news | last=Hempel |first=Jessi|title=Bill Gurley: The sage of Silicon Valley|url=http://tech.fortune.cnn.com/2013/02/11/bill-gurley-benchmark/ | work=Fortune | date=11 February 2013}} The firm has stated the reason for maintaining this approach is to "force discipline and accountability to focus on what matters" for its founders and limited partners,{{cite news |last=Konrad |first=Alex |title=Benchmark Is Raising A New $425 Million Fund For The AI Startup Era |url=https://www.forbes.com/sites/alexkonrad/2024/06/28/vc-firm-benchmark-raising-new-425-million-fund-for-ai/ |work=Forbes |date=28 June 2024}} as their profits are driven by investment performance as opposed to management fees.{{cite news |last=Griffith |first=Erin |title=What Is Venture Capital Now Anyway? |url=https://www.nytimes.com/2024/12/13/technology/andreessen-horowitz-benchmark-venture-capital.html |work=New York Times |date=13 December 2024}} The collective decision-making structure also means that Benchmark shares responsibility for the performance of the companies the firm invests in, not just the single partner who joins the company's board of directors.

Prior partners with the firm include Bill Gurley (who stepped back from his position after serving with the firm for twenty-one years),{{cite news |last1=Chernova |first1=Yuliya |last2=Winkler |first2=Rolfe |title=Venture Capitalist Bill Gurley Isn’t Joining Benchmark’s Next Fund |url=https://www.wsj.com/articles/venture-capitalist-bill-gurley-isnt-joining-benchmarks-next-fund-11587586136 |work=Wall Street Journal |date=22 April 2020}} Mitch Lasky, and Matt Cohler (who each stepped back from their roles as partners after each spending more than a decade with the firm).{{cite news |last=Primack |first=Dan |title=Benchmark raising ninth fund, Cohler and Lasky step back |url=https://www.axios.com/2018/10/01/benchmark-capital-cohler-lasky |work=Axios |date=1 October 2018}}

=Investments=

The firm's most successful investment was a 1997 investment of $6.7 million in eBay for 22.1% of the company.{{cite news | url=https://www.washingtonpost.com/archive/business/1999/04/09/loans-to-ebay-provide-a-big-payoff-for-venture-capital-firm/6ce256dc-06c9-4f48-bb4b-8110c20ef913/ | title=Loans to EBay Provide a Big Payoff for Venture-Capital Firm | newspaper=The Washington Post | date=April 9, 1999}} In 2011, it invested $12 million for an 11% stake in Uber, worth $7 billion in 2019 and $9.4 billion in 2023.{{Cite news | url=https://www.businessinsider.com/benchmarks-uber-investment-worth-7-billion-2017-8|title=The early Uber investor suing Travis Kalanick turned its $12 million investment into $7 billion stake|last=Muoio|first=Danielle | work=Business Insider |access-date=2019-06-19}}

Benchmark’s first eight funds, raised and invested between 1995 and 2019, returned more than seven and a half times the money invested, net of fees and carry.

The firm has made exits from several companies,{{cite news |last=Marshall |first=Matt |title=Benchmark raises $425M fund — but top firm loses partner who made it famous |url=https://venturebeat.com/business/benchmark-raises-425m-fund-but-top-firm-loses-partner-who-made-it-famous/ |work=Venture Beat |date=14 January 2011}} including Amplitude,{{cite news | title=Amplitude raises another $30M for its product-focused analytics tools | url=https://techcrunch.com/2017/08/10/amplitude-series-c/ | work=TechCrunch | date=August 10, 2017}} Asana,{{cite web | url=https://www.reuters.com/article/us-asana-ipo-idUKKBN25K2IP |title=Peter Thiel-backed workplace app Asana files for direct listing on NYSE |date=24 August 2020 | work=Reuters}} Confluent,{{cite web|last=Lawler | first=Ryan | title=Benchmark Backs Real-Time Data Processing Startup Confluent | url=https://techcrunch.com/2014/11/06/confluent/ |work=TechCrunch | date=November 6, 2014}} eBay, Elastic,{{cite news|last=Rao|first=Leena|title=Big Data Search And Analytics Startup Elasticsearch Raises $10M From Benchmark|url=https://techcrunch.com/2012/11/08/big-data-search-and-analytics-startup-elasticsearch-has-raises-10m-from-benchmark/|accessdate=9 November 2012|newspaper=TechCrunch|date=9 November 2012}} New Relic,{{cite web | last=Cromwell | first=Schuberth |title=Big winners on New Relic, Hortonworks IPOs are mostly Benchmark, Peter Fenton | url=https://www.bizjournals.com/sanjose/news/2014/12/15/big-winners-on-new-relic-hortonworks-ipos-are.html | work=American City Business Journals | date=December 15, 2014 | url-access=subscription}}{{cite news | last=Rao | first=Leena | title=Cloud App Management Platform New Relic Raises $15M From DAG, Benchmark | url=https://techcrunch.com/2011/11/16/cloud-app-management-platform-new-relic-raises-15m-from-dag-benchmark/ | work=TechCrunch | date=November 16, 2011}} Nextdoor,{{cite web |last=Chapman | first=Lizette| title=Valued at $1.1 Billion, Nextdoor's Pivot Appears to Be Paying Off | url=https://blogs.wsj.com/venturecapital/2015/03/04/valued-at-1-1-billion-nextdoors-pivot-appears-to-be-paying-off/ | work=The Wall Street Journal | date=March 4, 2015 | url-access=subscription}}{{cite news | last=Isaac |first=Mike |title=Nextdoor Raises $18.6M From Benchmark, Greylock in First Major Funding Round | url=http://allthingsd.com/20120724/nextdoor-raises-18-6-million-from-benchmark-greylock-in-first-major-funding-round/ |date=July 24, 2012}} Red Hat,{{cite news |last=Shankland |first=Stephen |title=Benchmark Capital invests in more open-source projects |url=https://www.cnet.com/tech/tech-industry/benchmark-capital-invests-in-more-open-source-projects/ |work=CNET |date=25 August 1999}} Snap,{{cite news | last=Wortham |first=Jenna |title=A Growing App Lets You See It, Then You Don't | url=https://www.nytimes.com/2013/02/09/technology/snapchat-a-growing-app-lets-you-see-it-then-you-dont.html| work=The New York Times |date=8 February 2013}}{{cite news | last=Primack | first=Dan | url=http://fortune.com/2013/06/26/snapchats-liquidity-trap/ | title=Snapchat's liquidity trap – The Term Sheet: Fortune's deals blogTerm Sheet | work=Fortune | date=June 26, 2013}}{{cite news | last=Winkler| first=Rolfe | title=Snap IPO Will Mint Fortunes for Founders, Two Big Investors | work=The Wall Street Journal | url=https://www.wsj.com/articles/snap-ipo-will-mint-fortunes-for-founders-two-big-investors-1486117806 | date=February 3, 2017 | url-access=subscription}} Stitch Fix,{{cite web |last=Gannes |first=Liz | title=Happy Stitch Fix Investors Pump Another Round Into Personal Shopping Startup | url=http://recode.net/2014/06/09/happy-stitch-fix-investors-pump-another-round-into-personal-shopping-startup/|website=Re/code|date=9 June 2014}}{{cite news |last=Kucera| first=Danielle| title=Stitch Fix Nabs $12 Million From Benchmark to Customize Commerce |url=https://www.bloomberg.com/news/articles/2013-10-17/stitch-fix-nabs-12-million-from-benchmark-to-customize-commerce| date=October 17, 2013}} and Uber.{{cite news | last=Helft |first=Miguel |title=These are the venture firms celebrating Uber's massive $18B valuation | url=http://fortune.com/2014/06/06/these-are-the-venture-firms-celebrating-ubers-massive-17b-valuation/ | work=Fortune | date=6 June 2014}}{{cite web| last=Arrington |first=Michael |title=Huge Vote Of Confidence: Uber Raises $11 Million From Benchmark Capital |url=https://techcrunch.com/2011/02/14/huge-vote-of-confidence-uber-raises-11-million-from-benchmark-capital/ |work=TechCrunch | date=February 14, 2011}}

class="wikitable sortable mw-collapsible mw-collapsed"

|+ class="nowrap" | List of investments

! Business !! Source

1-800-Flowers{{cn|date=April 2025}}
Airtable{{cite web |title=Peter Fenton - Forbes Profile |url=https://www.forbes.com/profile/peter-fenton/}}
AOL{{cn|date=April 2025}}
Art.com/Allposters.com{{cn|date=April 2025}}
Benchling{{cite web |title=Eric Vishria - Forbes Profile |url=https://www.forbes.com/profile/eric-vishria/}}
CTERA Networks{{cn|date=April 2025}}
Cerebras Systems{{cite web | url=https://cerebras.net/company/#investors | title=Company }}
Chainalysis{{cite news |title=Bitcoin Tracker Chainalysis Raises $16 Million, Plans to Track 10 More Cryptocurrencies |work=Fortune |date=5 April 2018}}
Cockroach Labs{{cite web |last=Novet| first=Jordan |title=Peter Fenton's latest investment is a database startup called Cockroach |url=https://venturebeat.com/2015/06/04/peter-fentons-latest-investment-is-a-database-startup-called-cockroach/ |work=VentureBeat | date=June 4, 2015}}
CouchSurfing{{cite press release | url=https://www.businesswire.com/news/home/20110825005488/en/CouchSurfing-Raises-7.6-Million-Series-Benchmark-Capital | title=CouchSurfing Raises $7.6 Million in Series A From Benchmark Capital and Omidyar Network to Expand Services and Fuel Growth in Cultural Exchange Network | publisher=PR Newswire | date=25 August 2011}}
Demandforce{{cn|date=April 2025}}
Digits{{cite news |last=Perez |first=Sarah | title=Stealth fintech startup Digits raises $10.5 million Series A from Benchmark and others | url=https://techcrunch.com/2019/11/06/stealth-fintech-startup-digits-raises-10-5-million-series-a-from-benchmark-and-others/ | work=TechCrunch |date=November 6, 2019}}
Discord{{Cite news | last=Takahashi | url=https://venturebeat.com/2015/02/10/fates-forever-mobile-game-maker-hammer-chisel-raises-funding-from-benchmark-and-tencent/ | title=Fates Forever mobile game maker Hammer & Chisel raises funding from Benchmark and Tencent | work=Venture Beat | date=February 10, 2015}}
Duo Security{{cite news | last=Lawler | first=Ryan | title=Two-Factor Authentication Startup Duo Security Raises $12 Million From Benchmark | url=https://techcrunch.com/2014/09/22/duo-security-12m-benchmark/ | work=TechCrunch | date=22 September 2014}}
Domo, Inc.{{cite web |last=Konrad |first=Alex |title=Domo Reveals Its Business Software, Raises $200 Million At $2 Billion Valuation | url=https://www.forbes.com/sites/alexkonrad/2015/04/08/domo-reveals-its-business-software-raises-200-million-at-2-billion-valuation/ |website=Forbes}}{{cite news | last=Lacy | first=Sarah | title=Series A Whopper: Benchmark Invests $33M in New BI Company Domo | url=https://techcrunch.com/2011/07/13/series-a-whopper-benchmark-invests-33m-in-new-bi-company-domo/ | work=TechCrunch | date=July 13, 2011}}
Docker{{cite news | last=Alex | first=Williams | title=Docker Raises $15M For Its Open-Source Platform That Helps Developers Build Apps In The Cloud | url=https://techcrunch.com/2014/01/21/docker-raises-15m-for-popular-open-source-platform-designed-for-developers-to-build-apps-in-the-cloud/ | work=TechCrunch | date=January 21, 2014}}
Dropbox{{cite web |last=Konrad |first=Alex| title=The Benchmark Way: Five Partners Who Make Other VC Firms Look Outgunned And Overstaffed |url=https://www.forbes.com/sites/alexkonrad/2015/03/25/benchmark-makes-other-firms-look-outmatched/ |website=Forbes}}
EBags.com{{cn|date=April 2025}}
Friendster{{cn|date=April 2025}}
HackerOne{{cite news | last=Gage | first=Deborah | title=HackerOne Emerges With $9 Million to Root Out Software Bugs | url=https://blogs.wsj.com/venturecapital/2014/05/28/hackerone-emerges-with-9-million-to-root-out-software-bugs/s/ | work=The Wall Street Journal | date=28 May 2014}}
Instagram{{cite news | last=Indvik |first=Lauren| title=Instagram Raises $7 Million, Hits 1.75M Members | url=http://mashable.com/2011/02/02/instagram-7-million/ |work=Mashable |date=2 February 2011}}{{cite news | last=Gannes |first=Liz | title=Instagram Raises $7M Led by Benchmark | url=http://allthingsd.com/20110202/instagram-raises-7m-led-by-benchmark/| work=All Things Digital}}
JAMDAT{{cn|date=April 2025}}
Juniper Networks{{cn|date=April 2025}}
Marin Software{{cite web | url=https://dealbook.nytimes.com/2008/04/07/benchmark-leads-series-b-for-marin-software/ | title=Benchmark leads series B for marin software | work=The New York Times | date=April 7, 2008 | url-access=subscription}}
Metacafe{{cn|date=April 2025}}
Minted{{cn|date=April 2025}}
Modern Treasury{{cite news |last=Roof |first=Katie |title=Venture Firm Benchmark Invests in Payments Startup as Sector Heats Up |url=https://www.wsj.com/articles/venture-firm-benchmark-invests-in-payments-startup-as-sector-heats-up-11576751401 |website=Wall Street Journal | date=19 December 2019 |access-date=21 June 2020}}
MySQL{{cn|date=April 2025}}
OpenTable{{cn|date=April 2025}}
Optimizely{{cite web |last=Ha |first=Andrew | title=Website Testing Service Optimizely Raises $28M Round Led By Benchmark, Plans Global Expansion | url=https://techcrunch.com/2013/04/10/optimizely-series-a/ |website=TechCrunch |access-date=3 June 2021 |date=10 April 2013}}
Palm, Inc.{{cn|date=April 2025}}
ResearchGate{{cite news | url=https://www.theguardian.com/media/pda/2010/sep/08/researchgate-funding-round | title=ResearchGate brings in strong funding round for 'scientific Facebook'| work=The Guardian | date=September 8, 2010}}
Seeking Alpha{{cn|date=April 2025}}
ServiceSource{{cn|date=April 2025}}
Sketch{{Cite web | url=https://techcrunch.com/2019/03/13/sketch-maker-of-popular-design-tools-just-landed-20-million-in-series-a-funding-from-benchmark-in-its-first-outside-round/ |title=Sketch, maker of popular design tools, just landed $20 million in Series A funding from Benchmark in its first outside round |last=Loizos| first=Connie |website=TechCrunch |archive-url=https://web.archive.org/web/20190314140201/https://techcrunch.com/2019/03/13/sketch-maker-of-popular-design-tools-just-landed-20-million-in-series-a-funding-from-benchmark-in-its-first-outside-round/ |archive-date=14 March 2019 |url-status=live |date=13 March 2019}}
Solv{{Cite web| url=http://fortune.com/2017/04/19/solv-urgent-care/|title=This Startup Wants to Be the OpenTable for Urgent Care | website=Fortune| date=April 19, 2017}}
Twitter{{cite web |last=Chapman |first=Lizette |title=Twitter Investor Benchmark Capital Gets Smaller Taste In Potbelly IPO |url=https://blogs.wsj.com/venturecapital/2013/10/04/twitter-investor-benchmark-capital-gets-smaller-taste-in-potbelly-ipo/| work=The Wall Street Journal | date=October 4, 2013}}
Tellme Networks{{Cite news | url=https://www.cnet.com/tech/services-and-software/start-up-tellme-grabs-47-million-in-financing/ | title=Start-up Tellme grabs $47 million in financing | first=Paul | last=Festa | work=CNET | date=January 2, 2002}}
Vessel{{cite news |last=Kafka |first=Peter | title=Jason Kilar's New Startup Has a Name, and a Whole Lot of Money | url=http://recode.net/2014/06/24/jason-kilars-new-startup-has-a-name-and-some-money/ | work=Recode | date=24 June 2014}}
WeWork{{Cite news |url=https://www.wsj.com/amp/articles/for-wework-investor-benchmark-a-struggle-to-balance-board-duties-with-founder-support-11569341467 |title=For WeWork Investor Benchmark, a Struggle to Balance Board Duties with Founder Support |newspaper=The Wall Street Journal | date=24 September 2019 |last=Winkler |first=Rolfe}}{{cite news | url=https://www.ft.com/content/f07d35b8-646d-4b48-9299-ee20e221f54a | title=WeWork U-turn reignites SoftBank and Benchmark battle | newspaper=Financial Times | date=14 April 2020 }}{{cite web |last=Alex | first=Konrad |title=Inside The Phenomenal Rise Of WeWork | url=https://www.forbes.com/sites/alexkonrad/2014/11/05/the-rise-of-wework/|website=Forbes}}{{cite web |last=Kosoff |first=Maya |title=WeWork, a startup that rents out office space to other startups, may soon be valued at $10 billion | url=https://www.businessinsider.com/wework-raising-a-new-round-of-funding-at-a-10-billion-valuation-2015-6 | work=Business Insider | date=June 24, 2015}}
Xapo{{cite news | url=https://www.wsj.com/articles/building-the-fort-knox-for-bitcoin-1394740732 | title=Latest Bitcoin Craze? Actual Bank Vaults |last=Rusli |first=Evelyn | work=The Wall Street Journal | date=March 13, 2014 | url-access=subscription}}
Yelp, Inc.{{cite web |last=Empson |first=Rip |title=Twitter, Yelp Board Member Peter Fenton On How Enterprise Is Learning From The Consumer Web | url=https://techcrunch.com/2012/06/10/peter-fenton-change-in-enterprise/ | work=TechCrunch | date=June 10, 2012}}
Zendesk{{cite web |last=Connie |first=Loizos |title=Benchmark's Newest Partner, Eric Vishria, On His First Year at the Powerhouse Firm |url=https://techcrunch.com/2015/07/07/benchmarks-newest-partner-eric-vishria-on-his-first-year-at-the-powerhouse-firm-2/ |website=TechCrunch|date=July 7, 2015 }}
Zillow{{cite web |last=Jackson |first=Eric |title=Interview With Bill Gurley: The Guy Who Backed OpenTable, Yelp, GrubHub, Twitter, Zillow And Uber |url=https://www.forbes.com/sites/ericjackson/2014/08/26/interview-with-bill-gurley-the-guy-who-backed-opentable-yelp-grubhub-twitter-zillow-and-uber/|website=Forbes}}
Zipcar{{cite news |last=Chapman |first=Lizette |title=For Venture Firms, Zipcar Purchase a Profitable but Disappointing Exit|url=https://blogs.wsj.com/venturecapital/2013/01/02/for-venture-firms-zipcar-purchase-a-profitable-but-disappointing-exit/ |website=The Wall Street Journal |date=2 January 2013}}
Zuora{{cite news |last=Schonfeld |first=Erick |title=Benchmark and Benioff Put $6.5 Million Into Zuora to Create a Salesforce for Online Billing |url=https://techcrunch.com/2008/03/13/benchmark-and-benioff-put-65-million-into-zuora-to-create-a-salesforce-for-online-billing/ | work=TechCrunch |date=13 March 2008}}{{cite web|title=Benchmark, Marissa Mayer Put $5.5M In Stationery Design And Retail Site Minted |date=November 15, 2011 |url=https://techcrunch.com/2011/11/15/benchmark-marissa-mayer-put-5-5m-in-stationery-design-and-retail-site-minted/ |publisher=TechCrunch}}

In popular culture

Benchmark Capital was featured in the Apple TV+ original TV series WeCrashed starring Jared Leto and Anne Hathaway. In the show, Anthony Edwards portrays Benchmark co-founder Bruce Dunlevie, who became WeWork's first major investor on the 1st of April in 2012 when Benchmark led WeWork's $17 million Series-A seed funding.{{citation needed|date=August 2023}}

Benchmark was also featured in the Showtime original Super Pumped starring Joseph Gordon-Levitt. In the series, Kyle Chandler plays former Benchmark general partner Bill Gurley, portraying his involvement in leading Ubers' $11 million round of fundraising in February 2011.{{Cite web |last=Clarendon |first=Dan |title=The Uber-Complex Battle Behind Showtime's 'Super Pumped' |url=https://www.tvinsider.com/1033206/super-pumped-showtime-uber-travis-kalanick-backstory/ |access-date=2023-05-01 |website=TV Insider |date=February 26, 2022 |language=en-US}}

See also

References

{{Reflist}}

External links

  • {{Official website|https://www.benchmark.com/}}

{{Private equity and venture capital}}

Category:Companies based in Menlo Park, California

Category:Financial services companies established in 1995

Category:Venture capital firms of the United States