8VC Raises $1 Billion: Joe Lonsdale's New Fund

8VC Pursues $1 Billion for Sixth Fund

8VC, the venture capital firm spearheaded by Palantir’s founder, Joe Lonsdale, is currently aiming to secure approximately $1 billion for its sixth investment fund. This information stems from a recent regulatory filing.

Fund Size and Previous Investments

The Austin-based firm intends to raise nearly 14% more capital than its prior flagship fund, which successfully closed with $880 million in February 2023. A request for comment has been directed to 8VC by TechCrunch.

A Decade of Investing

Over the past decade since its establishment, 8VC has made investments in more than 600 companies. Notable portfolio companies include Asana, Flexport, hims and hers, and The Boring Company, founded by Elon Musk, as indicated by PitchBook data.

Focus on Defense Technology

The firm’s investments in the defense sector have garnered significant attention, particularly given Joe Lonsdale’s background and connections within defense circles. This strategic focus is a defining characteristic of 8VC’s investment approach.

Saronic: Robotic Boat Drones

In 2022, 8VC provided seed funding to Saronic, a company specializing in the production of robotic boat drones capable of surveillance and reconnaissance. Saronic has since completed two funding rounds and is reportedly in discussions to raise $500 million, potentially achieving a $3 billion valuation, according to Forbes.

Overland AI: Autonomous Defense Vehicles

Overland AI, another of 8VC’s defense technology investments, is dedicated to the development of autonomous vehicles for defense and national security purposes. Following a $32 million Series A funding round earlier this month, Lonsdale expressed his belief that Overland AI is poised to become a leading “defense prime” contractor, as reported by Axios.

Health Tech and Life Sciences

Beyond defense, 8VC maintains a substantial focus on health tech and life sciences. These sectors represent over a quarter of the firm’s total investment deals, including publicly traded biotech companies like Senti Bio and Vir.

Relocation to Austin

Joe Lonsdale relocated 8VC’s headquarters from Silicon Valley to Austin in 2020. He cited a greater level of acceptance for “ideological diversity” as the primary reason for this move.

Lonsdale’s Early Career

While not formally considered a member of the PayPal mafia, Lonsdale completed two summer internships at PayPal. He subsequently held an executive position at Clarium Capital, a hedge fund founded by Peter Thiel that is no longer operational.

Palantir and Addepar

In addition to his role in founding Palantir, Lonsdale also co-founded Addepar, a company specializing in wealth management and investment software. Addepar has reportedly secured $250 million in funding at a pre-money valuation of $3.25 billion.