Key Takeaways
- • Founders Fund closed Founders Fund Growth III, a $4.6 billion late-stage venture fund, according to a Friday filing with the Securities and Exchange Commission.
- • The fund includes capital from 270 investors, with Peter Thiel, Napoleon Ta and Trae Stephens named as directors; a substantial portion came from the firm's general partners, per a person familiar with the matter.
- • The firm raised more than the roughly $3 billion Axios reported in December it was seeking, as outside investors contributed beyond that target.
- • The raise comes as the IPO market remains largely dormant and private late-stage capital is in heavy demand, with Founders Fund holding stakes in SpaceX, Stripe, Anduril and Palantir.
Summary
Founders Fund, the venture capital firm run by billionaire Peter Thiel, has closed a $4.6 billion late-stage venture fund, according to a Friday filing with the Securities and Exchange Commission reported by CNBC. The vehicle, Founders Fund Growth III, includes capital from 270 investors. Thiel, Napoleon Ta and Trae Stephens are named as directors in the filing. According to a person familiar with the matter, a substantial amount of the capital was provided by the firm's general partners. The person, who asked not to be named because the details are confidential, said the fund ended up raising more than the roughly $3 billion Axios reported in December the firm was pursuing. A Founders Fund spokesperson declined to comment.
Founders Fund was started by Thiel in 2005. Thiel co-founded PayPal, made the first outside investment in Facebook and funded defense software vendor Palantir. The firm's top investments include Palantir, Airbnb, Stripe, Affirm and Elon Musk's SpaceX. Founders Fund is also a key investor in Anduril, the defense technology company founded by Palmer Luckey. CNBC reported in February that Anduril was in talks to raise funding at a $28 billion valuation.
The fund's size comes as the IPO market remains virtually dormant, a condition that was compounded last week when President Donald Trump's announcement of widespread tariffs roiled tech stocks. Klarna, StubHub and Chime delayed plans to go public as the Nasdaq sank. Trump later announced a 90-day pause on most new tariffs, excluding those on China, while the administration negotiates with other countries. CNBC noted that uncertainty over where tariff levies will settle makes risky bets such as tech IPOs a difficult proposition. In this environment, large pools of growth capital allow Founders Fund to keep participating in follow-on rounds in private companies such as SpaceX, Stripe and Anduril that are off limits to many traditional venture firms.
Thiel was a major Trump supporter during the 2016 campaign but later had a falling out with the president and was largely on the sidelines in 2024. In June, he said he would vote for Trump over Joe Biden, adding, "I'm not going to give any money to his super PAC."
Founders Fund was started by Thiel in 2005. Thiel co-founded PayPal, made the first outside investment in Facebook and funded defense software vendor Palantir. The firm's top investments include Palantir, Airbnb, Stripe, Affirm and Elon Musk's SpaceX. Founders Fund is also a key investor in Anduril, the defense technology company founded by Palmer Luckey. CNBC reported in February that Anduril was in talks to raise funding at a $28 billion valuation.
The fund's size comes as the IPO market remains virtually dormant, a condition that was compounded last week when President Donald Trump's announcement of widespread tariffs roiled tech stocks. Klarna, StubHub and Chime delayed plans to go public as the Nasdaq sank. Trump later announced a 90-day pause on most new tariffs, excluding those on China, while the administration negotiates with other countries. CNBC noted that uncertainty over where tariff levies will settle makes risky bets such as tech IPOs a difficult proposition. In this environment, large pools of growth capital allow Founders Fund to keep participating in follow-on rounds in private companies such as SpaceX, Stripe and Anduril that are off limits to many traditional venture firms.
Thiel was a major Trump supporter during the 2016 campaign but later had a falling out with the president and was largely on the sidelines in 2024. In June, he said he would vote for Trump over Joe Biden, adding, "I'm not going to give any money to his super PAC."
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