VC firm Founders Fund closes Fund VI on $1.3bn

Founders Fund VI had an original target of $1bn and received commitments from 197 investors.

Venture capital firm Founders Fund has closed its sixth fund, Founders Fund VI, on $1.3 billion, according to the firm.

This brings Founders Fund’s total assets under management to more than $3 billion, it said. According to PEI Research & Analytics, the fund had a target of $1 billion.

The fund will be led by partners Lauren Gross, Ken Howery, Geoff Lewis, Scott Nolan, Luke Nosek, Brian Singerman and Peter Thiel, the firm said. All partners are generalists, who invest in a variety of sectors and stages.

According to the firm’s 25 March filing with the US Securities and Exchange Commission, the sixth fund received commitments from 197 limited partners.

“A fund of this size will allow us to put more capital behind our strongest entrepreneurs,” Singerman said in a statement. Founders Fund has targeted sectors such as aerospace, artificial intelligence, advanced computing, energy, healthcare, materials science, robotics, therapeutics and consumer internet, it said. Some of its investments include Airbnb, Oscar, Palantir Technologies, SpaceX, Stemcentrx and Stripe.

Founders Fund’s previous investment vehicle, Founders Fund V, fundraised in 2014 and closed on $1 billion, above its $750 million target, according to PEI Research. Founders Fund IV was raised in 2011 and closed on its $500 million target, according to PEI Research. The firm’s investor base via past funds includes fund of funds Darwin Ventures, Gordon & Betty Moore Foundation and The Endowment Master Fund, according to PEI Research.

Founders Fund was founded by Thiel, who co-founded PayPal in 1998 and founded hedge fund Clarium Capital Management. Howery and Nosek were also co-founders of PayPal.

Earlier this month, Accel partners closed Accel Growth Fund IV on $1.5 billion and Accel XIII on $500 million, and Lightspeed Venture Partners raised $1.2 billion via Lightspeed Venture Partners XI and Lightspeed Venture Partners Select II, as reported by Private Equity International.

A spokeswoman for Founders Fund was not available to comment.