Founders Fund said that it has closed more than $5 billion in two new funds across both early and late-stage investing, increasing the assets under its management to $11 billion.
The venture capital firm’s investments have included some of tech’s highest-profile startups. The new vehicles include a $1.9 billion venture fund and a $3.4 billion growth fund. The growth fund is almost twice the size of a $1.75 billion predecessor raised in 2020.
Founders Fund was an investor in Airbnb Inc. and other companies that went public in the listing spree of the past two years. Those companies included Palantir Technologies Inc., Affirm Holdings Inc., Asana Inc. and Nu Holdings Ltd., the Brazil-based financial company known as Nubank.
Founders Fund retains its San Francisco headquarters after adding a Miami office. General partner Keith Rabois has moved to Miami, where he is an enthusiastic promoter of the tech sector there.
The firm holds the view that good investments can come from any region, said another general partner, Brian Singerman. Founders Fund likes to keep an open mind in investing across sectors, stages and geographies, he said.
Singerman said he isn’t at all concerned about current difficult market conditions and shrinking valuations.
“In any macro event, phenomenal investments have taken place,” he said, also noting that lower valuations make it cheaper to invest.
Founders Fund partner Lauren Gross, also the firm’s chief operating officer, said much of the new capital will be used to double down or triple down on its current portfolio. She said the overall industry is saturated, though.
“There are too many funds raising too much capital ahead of what they should,” she said.
With the new funds, Napoleon Ta will be promoted to general partner of growth and Matias Van Thienen will be promoted to partner.
Founders Fund has remained a Silicon Valley staple through controversies involving its billionaire co-founder Peter Thiel and his ties to former President Donald Trump. Thiel, who also co-founded Palantir and remains its chairman, will remain active with Founders Fund, Gross said.
Thiel intends to step down in May from the board of Facebook parent Meta Platforms Inc. after 17 years. He plans to devote his time to supporting conservative political candidates who back the Trump agenda, including U.S. Senate hopefuls Blake Masters in Arizona and JD Vance in Ohio, Bloomberg News reported.