Peter Thiel’s Founders Fund has successfully closed its third growth fund, raising significantly more than the anticipated $3 billion. According to a recent SEC filing, the firm raised more than its previous $3.4 billion fund closed in early 2022. This latest fund not only exceeded expectations but also signals a renewed optimism in the venture capital market.
A notable highlight from the filing is the overwhelming investor interest, with 270 limited partners (LPs) contributing to the fund. Sources told CNBC that a considerable portion of the capital came directly from the firm’s general partners. Underscoring their commitment and confidence in the fund’s future prospects.
The new fund represents a strong shift in momentum for the broader venture landscape. In 2023, Thiel made headlines by reducing the size of a new fund. Citing slowed investment activity amid a bearish market. Today, the oversubscribed close suggests the tides are turning and investor enthusiasm is returning.
While artificial intelligence remains the top theme for many venture capitalists. Founders Fund is also positioning itself at the forefront of another fast-growing sector: defense technology. With deep connections in the Trump administration and a bold thesis on the ethics of defense investing. As seen in partner Trae Stephens’ public writings — the firm’s defense-tech portfolio is unmatched.
Founders Fund is already a major backer of AI giants like OpenAI, but its investments extend to high-impact defense and security startups including Anduril, SpaceX, Flock Safety, and Biofire. This combination of AI and defense focus places Founders Fund in a unique position to capitalize on two of the most transformative tech trends of the decade.
