Fawning Over Founders Fund II

We will soon find out how Clarium Capital navigated the tricky month of January; I am not hearing good things out of the hedge fund community, in general. And forget about the long only crew. If Clarium sidestepped the landmines they will add to their growing reputation. But Peter Thiel’s other vehicle is attracting attention as well.

Peter Thiel’s Founders Fund II, a venture capital fund, which recently raised a $220 million institutional fund, was recently written up in a piece that explains their philosophy a little more in depth than recent blog posts floating a bout the net, and fully explains the Series FF stock that is creating a stir:

The Founders Fund will continue to offer Series FF stock, which is being adopted across the industry adding to the unique approach to funding entrepreneurs. The stock is offered to start-up founders who can convert Series FF stock to preferred stock during subsequent rounds of funding. This allows Series FF stock holders to sell a portion of their stock and aligns their interests with their investors.

“The traditional venture capital model is broken,” said Sean Parker, a Founders Fund managing partner. “By offering tools like the Series FF stock, we are helping create a new model of investment and alignment of interests, confirming our commitment to the founders of our companies. This fund is truly for founders by founders.” Web 2.0 Money

The principals are in this for more than a buck, and I am willing to take them at face value:

“Largely because we were all founders ourselves, we’re inherently more interested in helping new entrepreneurs develop into successful leaders than we are in getting rich,” Parker said. “As someone who has started and run a few companies myself, my primary interest is in helping creative people build companies and run those companies over the long-term. I also happen to believe that this is the best way to create value for my limited partners, and by extension, for myself.”

These guys are certainly living the American dream, and hopefully their efforts will continue to create jobs and opportunities for the rest of us slackers.

Trust us on the money part. Peter Thiel’s $500,000 angel investment in Facebook is currently valued at $1 billion, based on the valuation Microsoft was willing to pony up just a few weeks ago.

Kinda makes a ten-bagger seem a little pedestrian, doesn’t it?

Give the article a read, it has bio’s on the rest of the Founders Fund team as well.

The Founders Fund Creates Founders Fund II
web 2.0 Money
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.

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