From PayPal Mafia to Investment Empire: Unveiling the Founders Fund's Rise to Success

Peter Thiel is a talented investor and entrepreneur. He has an astonishing ability to foresee the future and can accurately position key pieces. As a co-founder of PayPal, Thiel earned $60 million after the company was acquired by eBay, which laid the foundation for his subsequent investment career.

Thiel subsequently founded the macro hedge fund Clarium Capital and began making angel investments. In 2004, he co-founded Founders Fund with Ken Howery and Luke Nosek, with an initial size of only $50 million. Despite the difficulties in fundraising, Thiel still decided to personally contribute $38 million to fill the gap.

Founders Fund's early investments have been tremendously successful, especially the bets on Facebook and Palantir. In 2004, Thiel invested $500,000 in Facebook, acquiring a 10.2% stake, which ultimately brought him over $1 billion in returns. In the same year, Thiel also co-founded Palantir, with Founders Fund subsequently investing a total of $165 million, and by the end of 2024, the stake was valued at $3.05 billion.

Founders Fund's investment philosophy is unique, emphasizing "founder-friendly" practices and never ousting founders. This was a disruptive approach in the venture capital world at the time. Thiel believes that restraining those who break the mold is not only economically foolish but also a detriment to civilization.

In 2008, Founders Fund began to shift towards the hard technology sector. They invested $20 million in SpaceX, despite the fact that the company had already experienced three launch failures at that time. This investment proved to be extremely wise, and by the end of 2024, Founders Fund's stake in SpaceX had reached a value of $18.2 billion, achieving a 27.1 times return.

The success of Founders Fund stems from Thiel's unique investment philosophy and foresight. They dare to invest in areas overlooked by other venture capitalists and adhere to their own judgment. Although they have missed some significant opportunities, the overall performance of Founders Fund remains remarkable, making it one of the most influential venture capital firms in Silicon Valley.