According to sources familiar with the matter, Founders Fund is poised to wrap up fundraising for its third growth fund by the end of March. The investment firm, founded by Peter Thiel, is seeking to raise $3 billion, as reported by TechCrunch and Axios.
This fund is primarily aimed at making further investments in its successful late-stage portfolio companies and is expected to be significantly oversubscribed.
The previous growth fund, totaling $3.4 billion, was closed in early 2022 and has fully invested in companies such as Rippling, which secured $200 million in April. Founders Fund is also spearheading Anduril’s latest funding round, which is projected to reach up to $2.5 billion at a valuation of $28 billion, according to CNBC. Sources indicated to TechCrunch that this will mark the largest investment check the Founders Fund has ever issued. It remains unclear if the firm’s anticipated $1 billion investment in Anduril will come from the 2022 $3.4 billion fund.
The firm will not be pursuing a ninth core fund for early-stage companies since it was effectively established three years ago. Reports suggest that Founders Fund significantly reduced the size of its eighth venture capital fund, originally projected to be about $1.8 billion, to half that number in 2023, as reported by Axios. The remaining $900 million was allocated to the firm’s core ninth fund.
This is one factor fueling the anticipation surrounding the new growth fund. While many multi-stage venture firms are either raising larger funds or striving to maintain their peak sizes from the low-interest-rate era, Founders Fund is opting to limit its fund sizes.
Investors have compelling reasons to participate. Founders Fund boasts an impressive portfolio of growth companies, which includes notable names such as Anduril, SpaceX, Stripe, OpenAI, and Figma.
Founders Fund has chosen not to comment on the situation.
Compiled by Techarena.au.
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