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Illustration: Rae Cook\/Axios<\/p>\n
Founders Fund has quietly cut the size of its eighth venture capital fund in half, from around $1.8 billion to around $900 million, Axios has learned from multiple sources.<\/p>\n
Why it matters: <\/strong>This is a shot across the VC industry's bow by firm founder Peter Thiel, and will force peers to explain why they're not doing the same. It also puts added pressure on firms that currently are in market.<\/p>\n Details: <\/strong>This isn't a pure fund size reduction. Instead, the "extra" $1 billion will be pushed into a ninth venture capital fund that will activate whenever Fund VIII is fully committed (at which point management fees will kick in).<\/p>\n The big picture: <\/strong>Multiple sources say the firm's argument is that Fund VIII was raised just prior to the tech market correction, which could persist for years. If deal volume and prices decrease, then so should VC fund size.<\/p>\n Back to the future:<\/strong> VC fund size cuts are unusual, but not unique.<\/p>\n\n
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