Thrive Capital raises $10 billion for largest fund to date

Thrive Capital has successfully raised $10 billion for its newest investment vehicle, marking the largest fundraise in the firm’s history and representing nearly double the size of its previous fund. The announcement confirms that $1 billion of the total will be allocated to early-stage investments, while the remaining $9 billion will focus on growth-stage opportunities, according to a statement from Thrive Capital.

The fundraising effort, dubbed Thrive X, represents the firm’s 10th fund and was reportedly oversubscribed, Thrive told Bloomberg. Founded by Josh Kushner, the venture capital firm has built an impressive portfolio that includes some of the technology sector’s most valuable companies, including OpenAI, Stripe, and SpaceX.

Thrive Capital Investment Strategy Focuses on Concentration

The firm has distinguished itself through a concentrated investment approach, choosing to back a select number of founders rather than spreading capital across numerous bets. According to the firm’s announcement, this strategy emphasizes committing deeply to chosen entrepreneurs and their missions. This concentration demands unwavering loyalty to the founders and companies Thrive supports.

Additionally, Thrive Capital has demonstrated success beyond traditional venture investing through its company incubation program. The firm has launched 12 companies to date, with at least six having achieved unicorn status, valued at $1 billion or more. This track record has likely contributed to investor confidence in the latest fundraise.

Portfolio Companies Drive Investor Interest

Beyond its marquee investments in OpenAI, Stripe, and SpaceX, Thrive Capital maintains positions in other high-profile technology companies including Databricks, Anduril, and Cursor. These investments continue to appreciate in value, providing strong returns for the firm’s limited partners. The performance of these portfolio companies has undoubtedly strengthened Thrive’s ability to attract capital for subsequent funds.

Speaking to Bloomberg, Josh Kushner expressed bullish views on the artificial intelligence sector, suggesting that the ultimate winners from the AI boom would exceed current expectations. He characterized the technology as still being in its early stages, implying significant growth potential remains ahead. This perspective aligns with Thrive’s substantial investment in OpenAI, one of the leading companies in generative AI.

IPO Prospects Could Deliver Significant Returns

The massive fundraise also reflects anticipation surrounding potential public market debuts from key portfolio companies. Industry speculation has centered on possible initial public offerings from both OpenAI and SpaceX, which could generate unprecedented returns for Thrive Capital’s limited partners. These exits would represent some of the largest IPOs in technology sector history.

However, authorities have not confirmed specific timelines for any public offerings from these companies. The expectation of these liquidity events has nevertheless generated considerable interest among institutional investors seeking exposure to these high-growth technology companies. According to PitchBook, limited partners are anticipating what could be a windfall from these mega-IPO opportunities.

Meanwhile, the venture capital landscape has become increasingly competitive for mega-funds, with only the most successful firms able to raise funds at this scale. Thrive Capital’s ability to secure $10 billion in commitments underscores its strong track record and investor confidence in its investment approach. The oversubscribed nature of the fundraise suggests demand exceeded the firm’s target.

The timing and details of potential IPOs from Thrive Capital portfolio companies remain uncertain, though market observers continue to monitor developments closely. The firm has not provided specific information about expected exit timelines or additional details about its investment plans for the new fund.