Thiel’s Founders Fund Raises $4.6B for Defence-Focused Growth Deals Amid Market Slowdown
Even as startup funding slows, Thiel is still in the game.
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.
