Discussion

• @danprimack Dan Primack on x

  Founders Fund, co-led by Peter Thiel, raised a $1.8 billion venture capital fund last year. Now it's handing back half of it — the first time a VC firm has done that since the dotcom crash. Will other VC firms follow suit? Scoop with @imkialikethecar https://www.axios.com/...

• @mayazi Maya Parody on x

  Interesting trend. The more valuations drop the less sense megafunds make for deploying capital in the next year or 2. The question looming is if the downturn in tech dealflow will also effect fund structures long term https://twitter.com/...

• @carnage4life Dare Obasanjo on x

  The fallout of the zero interest rate era ending will be more pronounced this year. I honestly expected a16z's crypto fund to be the first to give LPs their money back. I'm somewhat surprised they haven't especially as someone as savvy as Thiel now has. https://twitter.com/...

• @meghankreynolds Meghan Reynolds on x

  Smart move by @foundersfund. Coming out of age of excess, as everyone tightens belts (focus, pricing discipline) it only makes sense that fund size reflects this reality. We have seen similar moves by GPs in past cycles (eg., mega buyout post GFC). https://www.axios.com/...

• @samirkaji Samir Kaji on x

  This is a very big deal - We saw this in 2000 quite a bit; I don't anticipate too many firms doing this for recently closed funds, but between Founders Fund, Sequoia (fees), and Tiger (more than 50% cut in fund size), changes are looming https://www.axios.com/...

• @darian314 Darian Shirazi on x

  I admire this move — venture is about carry returns, not fee hoarding by maximizing AUM. Mega venture funds cause GPs to become lazy and misalign incentives with LPs and companies. It's not about how much you raise, it's about how much you return. https://twitter.com/...

• @curiousjorge65 Miles Dieffenbach on x

  Huge news and great for the VC industry. https://twitter.com/...

• @immad @immad on x

  There goes the “dry powder”! https://twitter.com/...

• @danprimack Dan Primack on x

  After dotcom bust, VC fund size cuts were driven by less startup formation & LP pressure. But, as a reader notes, also to write off bad deals & start fresh (lot of clawbacks). (FF move totally different. hasn't begun investing new fund). https://www.axios.com/...

• @cortessteve Steve Cortes on x

  Peter Thiel's venture firm cuts fund in half. Another ominous sign for an economy in serious trouble? https://www.axios.com/...

• @tmrohan Terrence Rohan on x

  Multi-stage VC funds got too big. It wasn't serving their LPs nor their founders well. “Management Fees are one hell of a drug” https://twitter.com/...

• @pitdesi Sheel Mohnot on x

  Founders Fund is reducing the size of their flagship fund from $1.8B to $900M. The industry has too much $, we will (& need to) see a lot more size reductions for better returns. https://www.axios.com/...

• @danprimack Dan Primack on x

  Scoop with @imkialikethecar: Founders Fund has slashed the size of the venture capital fund it raised last year, reflecting the tech industry correction. First time this has happened since the dotcom crash, two decades ago. https://www.axios.com/...