Google Buying Nest Is Cozy Deal for Venture Firms

Nest Labs Inc. isn’t just helping homeowners maintain a cozy environment. Google Inc.’s $3.2 billion acquisition of the digital-thermostat maker is also making venture-capital firms very comfortable.

Kleiner Perkins Caufield & Byers, one of the earliest backers of the company co-founded by former Apple executive Tony Fadell, invested $20 million in Nest beginning in 2010 and will see a return of about $400 million, a person with knowledge of the deal said. Shasta Ventures, another early Nest backer, will boost its original investment by more than 15 times, said another person, who asked not to be identified because the gains aren’t public. Google’s venture arm had also invested in Nest.