Investor Highlight: Founders Fund

Today we’re looking at the venture capital firm attempting to solve an existential crisis in VC—what future is worth funding? The firm is Founder’s Fund and its manifesto goes deep into the origins of VC, initially as investments into technologically-challenging and ambitious pursuits (i.e. Intel, Apple) vs. the 90’s pursuit to solve irrelevant problems (i.e. companies you’ve forgotten about or never heard of). Founders Fund seeks to invest in transformational technologies, specifying the industries of Aerospace & Transportation, Biotechnology, Advanced Machines & Software, Energy, and The Internet. The firm’s strategy is one of placing big bets on even bigger visions, and on founders who maintain both the vision and flexibility to see that business grow.
 

The founding partners are some of the biggest names in startups, including notorious libertarian billionaire Peter Thiel and his PayPal co-founders, Ken Howery and Luke Nosek, and Napster founder Sean Parker. Peter Thiel's support of former POTUS, Donald Trump, along with ongoing political contributions, is at odds with many social progressives in Silicon Valley.

For entrepreneurs seeking investments, however, the controversy around Thiel pales in comparison to the firm’s successful track record and fat checks. Here’s a sampling of some of those recent investments.

Ramp recently raised a Round B-2, in which the two-year-old company reached a $3.6BN valuation for its corporate credit card and spending management system. The round was led by ICONIQ Capital, the investment vehicle of the super-wealthy, including Mark Zuckerberg and Jack Dorsey. 

Modern Animal operates veterinary clinics and 24/7 telehealth services for anxious pet-owners at a flat fee of $100 a year. The clinic has brought the millennial e-commerce vibe to pet clinics all over its hometown (and Peter Thiel’s post-Valley home base) in Los Angeles. Founders Fund led the $40MM Round B in July, helping the company reach a $300MM valuation. 

Sundae connects fixer-uppers with potential buyers. The pandemic-related real estate boom has made this company an even savvier investment, as evidenced by the recent $80MM in Round C funding led by Fifth Wall & General Global.