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

BlockBeats News, May 3rd, according to Bloomberg, sources familiar with the matter revealed that Peter Thiel’s top Silicon Valley investor venture capital fund, Founders Fund, has raised $6 billion to invest in late-stage companies. This is also the largest fundraising in the firm’s history.

Most of the funding—$4.5 billion—comes from limited partners, including sovereign wealth funds. An insider said the remaining $1.5 billion comes from senior management and employees at Founders Fund, including Peter Thiel himself.

The fund’s fourth growth-stage investment fund was quickly assembled less than a year after the previous fund was launched, making it the fastest time Founders Fund has replaced a fund in its 20-year history. Launching a larger fund so quickly reflects that the demand for huge financing among startups in the mature stage is rising; these companies are increasingly inclined to raise capital from private investors rather than the public markets.

Other venture capital firms are also raising tens of billions of dollars for late-stage investments, partly because tech companies need more money 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 fund with a size of $10 billion, its largest ever.