Even as liquidity from IPOs and acquisitions remains weak, some firms continue to raise large growth-stage funds.
The latest example is Peter Thiel’s Founders Fund, which has closed a $4.6 billion late-stage venture fund, according to a recent SEC filing. The fund — called Founders Fund Growth III — had been rumoured to be around $3 billion late last year.
Founders Fund is best known for early bets on companies like Airbnb, Stripe, and especially Palantir — a defence and data company that reflects Thiel’s ongoing interest in national security startups. The firm has continued to push deeper into the defence tech space, most notably co-leading Anduril’s $1.5 billion Series F round. That deal valued the military-tech firm at $14 billion.
The timing of this new fund is notable. Many tech companies have delayed or scrapped IPO plans, and the broader M&A market is slow. Public markets are volatile, and geopolitical tensions — including concerns about trade — have made investors cautious. That has hurt venture returns, especially in non-military sectors.
Still, Founders Fund has been active. So far this year, the firm has made 20 investments, according to Crunchbase. Late last year, it led a $600 million round in Crusoe Energy Systems, valuing the company at $2.8 billion.
Thiel, a polarising figure in Silicon Valley and beyond, has long backed companies that align with his worldview. That includes a sharp focus on U.S. national defence, surveillance, and energy independence — areas that remain attractive to certain investors even as the broader market cools.
