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Founders Fund

foundersfund.com

Invest in companies developing real, transformational technologies across aerospace & transportation, biotechnology, advanced machines/software, energy, and the internet. Focus on smart founders pursuing difficult technical problems with audacious vision seeking enormous markets.

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Investment Thesis

Founders Fund believes venture capital’s primary purpose is to fund positive technological transformation and earn attractive returns by backing smart people solving difficult scientific and engineering problems. They argue the industry’s poor performance since 1999 stems from shifting away from transformational technologies toward incremental solutions and ‘fake problems.’ They advocate for contrarian, independent thinking that pursues ambitious, world-changing companies rather than consensus investments.

What Sets Them Apart

  • Partners and employees invest ~20% of total fund capital (vs. industry standard 1%), creating strong alignment with success
  • Never remove founders from CEO positions; maintain founder control through voting mechanisms - claim this produces higher returns
  • Explicitly invest in difficult-to-assess companies that lack popularity to avoid inflated valuations
  • Accept technology risk but seek companies where success would be extraordinarily valuable
  • Focus on companies pursuing transformational rather than incremental innovation

Investment Team

6 Partners at Founders Fund

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