Founders Fund completes its largest fundraising ever, raising $6 billion

On May 3rd, sources revealed that top Silicon Valley investor Peter Thiel’s venture capital fund, Founders Fund, has raised $6 billion for investing in later-stage companies, marking the largest fundraising in the organization’s history.
Most of the funds—$4.5 billion—came from limited partners, including sovereign wealth funds. An insider stated that the remaining $1.5 billion was contributed by senior management and employees of Founders Fund, including Peter Thiel himself.
The fund’s fourth growth-stage investment fund was quickly assembled less than a year after the launch of the previous fund, making it the fastest fund replacement in Founders Fund’s twenty-year history. Launching a larger fund so rapidly reflects that mature startups’ demand for massive financing is rising, with these companies increasingly preferring to raise capital from private investors rather than the public markets.
Other venture capital firms are also raising billions of dollars for late-stage investments, partly because tech companies need more capital to cover expensive computing resources. For example, Sequoia Capital recently raised about $7 billion for a new fund to increase investments in large companies; Thrive Capital also raised a $10 billion fund, its largest ever.