Even with a slowdown in liquidity from IPOs and acquisitions, some venture capital firms are still raising sizable growth-stage funds. The latest standout is Peter Thiel’s Founders Fund, which has officially closed a massive $4.6 billion late-stage fund, according to a filing with the U.S. Securities and Exchange Commission.
This new fund, named Founders Fund Growth III. Had been previously reported in December 2024 with a target of around $3 billion. Its final size underscores continued investor confidence in Founders Fund’s track record, even amid uncertainty in capital markets.
Based in San Francisco, Founders Fund is well known for its early and strategic investments in companies like Airbnb, Stripe, and Palantir. More recently, the firm has made bold moves in defense technology. Notably, it co-led Anduril Industries’ $1.5 billion Series F round alongside Sands Capital Ventures. A deal that valued the defense company at $14 billion.
The announcement of Growth III comes during a challenging period for venture capital. Several high-profile IPOs have been paused, and the M&A landscape remains unpredictable due to stock market volatility and global trade tensions. These dynamics have hindered exits, raising concerns over DPI (distributed to paid-in capital). A key metric for limited partners seeking returns from previous fund investments.
Despite these headwinds, Founders Fund has remained active. Crunchbase data shows the firm has completed 20 startup investments in just the first three and a half months of 2025. Late last year, it led a $600 million funding round for Crusoe Energy Systems. Pushing the energy firm’s valuation to $2.8 billion.
With Growth III now closed, Founders Fund is signaling its intent to stay aggressive in growth-stage investing, even as many others proceed cautiously.
