Founders Fund, the venture capital firm founded by Peter Thiel, is poised to conclude fundraising for its third growth fund by the end of March, according to sources close to the firm. The fund, which is targeting $3 billion, is expected to be significantly oversubscribed, a testament to the firm's impressive track record of investing in successful late-stage companies.

The new fund will primarily focus on making additional investments in Founders Fund's existing portfolio companies, which include notable names like Rippling, Anduril, SpaceX, Stripe, OpenAI, and Figma. The firm's previous $3.4 billion growth fund, which closed in early 2022, is already fully invested, with Rippling raising $200 million in April. Founders Fund is also leading Anduril's latest funding round, which is expected to reach $2.5 billion at a valuation of $28 billion, with the firm writing its largest check to date.

Notably, Founders Fund will not be raising a ninth core fund for early-stage companies, as it essentially already raised the funds three years ago. Instead, the firm slashed the size of its eighth venture capital fund from $1.8 billion to $900 million in 2023, which was then rolled into the core ninth fund. This move has generated significant excitement for the new growth fund, as investors are eager to tap into Founders Fund's enviable portfolio of growth companies.

Founders Fund's decision to limit its fund sizes stands out in an industry where many multi-stage venture firms are raising larger funds or trying to maintain their peak sizes from the zero-interest-rate policy (ZIRP) era. This disciplined approach has likely contributed to the firm's ability to attract investors, who are drawn to its impressive portfolio and successful investment strategy.

Despite declining to comment, Founders Fund's actions speak to its commitment to investing in high-growth companies with significant potential. As the firm closes in on its $3 billion target, it's clear that investors are betting big on Founders Fund's ability to continue delivering strong returns.

The successful fundraising effort is also a testament to Peter Thiel's reputation as a savvy investor and entrepreneur. Thiel, who co-founded PayPal and served on the board of Facebook, has built a reputation for spotting innovative companies with huge potential. Founders Fund's portfolio is a reflection of this approach, with companies like SpaceX, Stripe, and OpenAI showcasing the firm's ability to identify and nurture game-changing technologies.

As Founders Fund looks to deploy its new $3 billion growth fund, investors and industry observers alike will be watching closely to see where the firm places its bets. With its proven track record and disciplined approach, Founders Fund is well-positioned to continue driving growth and innovation in the tech industry.