I wanted to take this opportunity to announce The Kleiner Perkins Facebook Applications Fund (KPCBFBAF) which recently closed on $150 million of capital. I’ve recruited Chamath Palihapitiy, Facebook’s VP Marketing and Operations as well as Gideon Yu, Facebook’s CFO to our Investment Board. The Fund, whose primary limited partner is Harvard University, will be dedicated to investing in applications developed for Facebook. We’ll be looking to invest sizable amounts of capital into each company from $2 million to $5 million over the life of the company. You may note this fund is exceedingly larger and better funded than Jim Breyer and Accel’s recently announced Facebook-focused fund (”the fbFund”) which Mark Zuckerberg has taken a role in.

I think Kleiner’s larger fund size and ability to capture the attention of Mark’s left and right-hand men reflects KP’s elevated position in the venture capital community relative to Accel. At the end of the day, much of venture capital is about size. Frankly, size matters and we wanted to show the developer community just how committed we are to Facebook and Web 2.0. The General Partners at KP agreed this was the right amount of capital to deploy given the momentous change Facebook is creating in the marketplace. At the end of the day, this entire fund is less capital intensive than the Maltese Falcon and will likely depreciate at a much slower rate.