Founders Fund, the venture capital firm co-founded by Peter Thiel, is set to close its third growth fund at $3 billion by the end of March 2025, according to sources.
The fund, which focuses on late-stage investments, is reportedly oversubscribed, signaling strong investor demand.
Backing High-Growth Tech Companies
Founders Fund has historically invested in some of the most successful tech startups, including SpaceX, OpenAI, Stripe, Anduril, and Figma. Its previous $3.4 billion growth fund, closed in early 2022, is already fully deployed, including investments in:
- Anduril, which is currently raising $2.5 billion at a $28 billion valuation, with Founders Fund leading the roundounts, allowing users to receive payments, manage multi-currency wallets, and convert funds seamlessly.
- Rippling, which raised $200 million in April 2024
Shifting Away from Early-Stage Venture Funds
Unlike many multi-stage VC firms expanding fund sizes, the prominent VC is limiting fund growth and focusing on later-stage investments. The firm:
- Won’t raise a ninth core early-stage fund—having effectively merged its $900 million remaining eighth fund into its next core fund
- Cut its previous early-stage venture fund in half in 2023, signaling a shift in investment priorities
Why Investors Want In
While many firms struggle in the post-ZIRP (Zero Interest Rate Policy) era, Founders Fund has maintained a highly selective, disciplined approach—making its new growth fund especially attractive to investors.
With its strong track record in scaling late-stage startups, the $3 billion fund positions Founders Fund to continue backing the next generation of industry leaders while adapting to shifting market dynamics in venture capital.
