Founders Fund Raises $4.6B: A Sign of Big VC Spending

Founders Fund Completes Third Growth Fund Raise

According to a recent SEC filing, Peter Thiel’s Founders Fund has successfully finalized the collection of capital for its third growth fund.

The total amount raised represents a significant increase compared to its prior $3.4 billion growth fund, which was closed in early 2022.

Fund Size and Limited Partner Interest

The current raise exceeded the initially reported target of $3 billion, as indicated in February reports. Founders Fund’s established success allows it to consistently secure oversubscribed funds due to high demand from Limited Partners (LPs).

The SEC filing reveals that a total of 270 LPs participated in this funding round. Furthermore, a considerable portion of the capital was contributed by the firm’s general partners, as reported by CNBC.

Shift in Venture Capital Market Conditions

In 2023, amidst a downturn in the venture capital market, Thiel opted to reduce the size of a new fund, citing a slowdown in investment activity. This recent fundraise serves as another signal that the venture investing landscape is transitioning from a bear market to a bull market.

Strategic Investments in Key Sectors

While many venture capital firms are heavily focused on AI, Founders Fund is strategically positioned within another rapidly growing sector: defense technology.

The firm also maintains strong connections within the Trump administration. Trae Stephens, a partner at Founders Fund and co-founder of Anduril, authored a paper addressing the “ethics” of investing in defense tech startups.

Dominant Position in Defense Technology

Although Founders Fund invests in numerous AI startups, including OpenAI, it possesses what is arguably the most substantial defense technology portfolio in Silicon Valley.

This portfolio includes prominent companies such as Anduril, SpaceX, Flock Safety, and Biofire, among others.

A request for comment sent to Founders Fund has not yet received a response.