Peter Thiel's Founder's Fund has successfully closed its third growth fund, raising a staggering $3.4 billion, according to a recent SEC filing. This significant haul not only surpasses the firm's initial target of $3 billion but also marks a substantial increase from its previous $3.4 billion growth fund closed in early 2022.

The fund's impressive size is a testament to Founder's Fund's reputation as a leading venture capital firm. With 270 limited partners (LPs) participating in the fund, it's clear that the firm's track record and investment strategy have resonated with investors. Furthermore, a substantial portion of the capital came from the firm's general partners, demonstrating their confidence in the fund's prospects.

The successful raise is also seen as a sign of a rebounding venture market. In 2023, Founder's Fund famously opted to reduce the size of a new fund, citing a slowdown in investing. However, this latest fundraise suggests that the market has shifted from bear to bull, with investors regaining confidence in the sector.

Founder's Fund has established itself as a key player in the defense tech space, with a formidable portfolio that includes Anduril, SpaceX, Flock Safety, and Biofire, among others. The firm's focus on this sector is noteworthy, given the growing interest in AI startups. Fund partner Trae Stephens, co-founder of Anduril, has even written a manifesto on the "ethics" of backing defense tech startups, highlighting the firm's commitment to this area.

While AI startups, such as OpenAI, are also part of Founder's Fund's portfolio, the firm's defense tech focus sets it apart from other venture capital firms. Its connections to the Trump Administration, through fund partner Trae Stephens, further underscore the firm's influence in this space.

The successful raise of Founder's Fund's third growth fund has significant implications for the venture capital industry. It signals a renewed appetite for investment in startups and a growing confidence in the sector's prospects. As the firm continues to invest in cutting-edge technologies, including AI and defense tech, it will be interesting to see how its portfolio companies shape the future of these industries.

Founder's Fund did not respond to a request for comment on the fundraise. However, the firm's actions speak louder than words, and this latest development is a clear indication of its commitment to driving innovation and growth in the tech sector.