Venture capital firm, with Facebook, SpaceX, Spotify investments, raise mega fund.
Venture capital firm Founders Fund has raised a fourth fund, totaling
$625 million. Previous funds were raised in 2005, the year of the
firm's inception, as well as in 2007 and 2010. Facebook's Peter Thiel
and Sean Parker list among the partners of the San Francisco-based firm.
Founders Fund is well-known as one of the first investors in Facebook, Spotify, and many other high-profile companies.
And as the name would suggests, Founders Fund describes its
philosophy to ventures as "founder-supportive," which translates to
giving entrepreneurs space to develop their products and/or services
without the intrusion of what Founders Fund representative Tobey Proskey
calls, "adult supervision."
"From the beginning, we've always believed that we're investing not
just in the company, but in the entrepreneurial spirit of the company,"
said Prosky to VatorNews. "This has led us to a more hands-off approach.
We're not hostile to entrepreneurs who come in with new ideas."
"I guess the best example would be Facebook," continued Prosky. "When
we invested there, we structured the board, so Mark [Zuckerberg] could
retain control. We resisted the temptation of a sale at sub-$2 bill
valuation, and as a result he's created a company that is worth more
significantly more than that. We don't think we know how to run these
businesses better than they can."
Judging by the firm's list of partnerships, and their successes, this
philosophy seems to be paying off. Aside from its most high-profile
client, Facebook, Founders Fund has invested in Spotify, SpaceX, and
Something all of these companies have in common is innovative tech.
Prosky confirmed the firm's technological bent, as well that Founders
will continue to invest in a mix of early-stage technology start-ups and
follow-ons. The new fund will invest across sectors, including
aerospace, artificial intelligence, analytical software, emerging
biotechnologies, robotics, education, and consumer internet.
"Investing in tech is at the heart of what we do," said Prosky to
VatorNews. "It provides a unique opportunity to expand and transport
humanity in significant ways.We're look to fund extaordinary
entrepreneurs, who are engaged in important projects, who are committed
to succeeding and will bring about transformative effects."
Prosky could not disclose investors for this funding suite, due to a confidentiality agreement.