Peter Thiel’s Founders Fund is looking to raise around $750 million as part of their fifth fund. This is about a 20% increase from the previous round. Founders Fund is passing information to investors now and is expecting to close the fund in the first quarter. Around 70% of the fund will go towards new investments and the rest will go towards additional rounds.
Thiel’s wealth started to really take off after PayPal was sold to eBay for $1.5 billion in 2002. He started Founders Fund in 2005 after writing a $500,000 check to Facebook in the early days, which became worth over a billion dollars. Thiel is still on Facebook’s board of directors. He has sold almost all of his shares in the company though. He sold over 80% of his pre-IPO stake within three months of the May 2012 Facebook IPO.
Founders Fund raised around $1.15 billion and invested in companies like SpaceX, Palantir Technologies, and Yammer. Ken Howery and Luke Nosek worked with Thiel at PayPal and as part of the investment team at Founders Fund. Founders Fund will take a 2.5% management fee on the new fund and keep 20% of the profits from their investments. Founders Fund raised their fourth fund in late 2011 after bringing in $625 million.
Another prominent team member of Founders Fund is Sean Parker. Parker co-founded Napster at the age of 19 and was the founding President of Facebook.