Peter Thiel’s Founders Fund Exits Stake in Facebook.

August 27, 2019 | News, Venture Capital

The Founders Fund, which backed Facebook from its earliest days, has exited its stake in the social media company. The decision was part of a broader plan from the venture capital firm’s trading partner.

The announcement came in an SEC filing on Monday, Reuters reports.

Thiel now owns 63,550 Class A shares both independently and through a different fund. He sold roughly $4 million in FB stock last week (including shares that were part of this fund). Thiel’s stake now comprises 0.1% of the social media giant. Despite criticism from some over his support of President Donald Trump, he is still on the company’s board of directors.

Facebook CEO Mark Zuckerberg has defended Thiel’s board seat, citing the company’s stance on a diversity of opinion.

Founders Fund and PayPal

Thiel, Ken Howery, and Luke Nosek – all founders of PayPal — and Sean Parker launched the Founders Fund in 2005 with $50 million. In addition to investing in Facebook, the fund also tapped early stakes in Airbnb and SpaceX. Thiel became an investor in Facebook the year prior with a $500,000 stake. At the time, Facebook’s valuation sat at just $5 million.

Today, Facebook has a valuation of $519.2 billion.

Thiel would later sell 16.8 million of his personal shares in 2012 when Facebook went public. He later sold another 20 million shares after the lockup expiration.

The venture capital pro recently generated buzz with investments in fintech and blockchain companies.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: Coinbase to Allow Loans Against Bitcoin Holdings
August 14, 2020     Digital Assets, Latest News, News

This should be another shot in the arm for bitcoin adoption. Liquidity of holding is a much-desired feature of any asset, and U.S. digital assets exchange Coinbase is pulling out…
FinTech/ESG: Solar Financier Loanpal Ties Up With Blackstone for $300M of Solar Loans
August 14, 2020     ESG and Sustainability, FinTech, Latest News, News

Loanpal, the fintech that is a market leader in financing of residential solar installations, announced Thursday that Blackstone (NYSE: BX) had committed to invest $300 million in solar loans originating…
Alternative Investments: iCapital To Provide Alternative Investment Solutions to PGIM’s Retail Clientele
August 14, 2020     Alternative Investments, FinTech, News

PGIM Investments is the retail distribution arm of PGIM, Inc, the $1.4 trillion investment management business of Prudential Financial, Inc. (NYSE: PRU). It has tied up with iCapital Network, a…
Venture Capital: Impossible Foods Raises $200M; Vegan Pork On The Way
August 14, 2020     News, Venture Capital

Impossible Foods, the plant-based meat startup, announced Thursday its Series G round raise of $200 million. The investment round was led by new investor Coatue Management LLC. It saw participation…