Thrive Capital Secures Record $5 Billion in Biggest-Ever Venture Fundraising

Thrive Capital has reached a historic milestone by closing its largest-ever fundraising round, securing a remarkable $5 billion for its new venture fund, Thrive IX. This significant achievement highlights Thrive’s pivotal role in the resurgence of investor interest, particularly in the rapidly evolving artificial intelligence sector.

We are humbled to announce the close of Thrive IX. Exceeding $5 billion, Thrive IX comprises $1 billion designated for early-stage investments and $4 billion designated for growth-stage investments.

At Thrive we aim to be concentrated in both people and ideas. The ways in which… pic.twitter.com/WE5eDsCWEr

— Joshua Kushner (@JoshuaKushner) August 5, 2024

The newly raised capital will be divided into $1 billion for early-stage investments and a substantial $4 billion for growth-stage opportunities. This brings Thrive Capital’s total assets under management to nearly $15.6 billion, reflecting the firm’s impressive growth since its inception.

Founded 15 years ago, Thrive Capital has built a notable portfolio that includes high-profile investments in Instagram, GitHub, and Spotify. Its most significant investment to date is a $1.8 billion stake in Stripe, a payments provider currently valued at $50 billion. Stripe ranks as the third-most valuable U.S. startup, following SpaceX and OpenAI.

Joshua Kushner, who scaled Thrive Capital from an initial $40 million fund in 2011 to a $3.3 billion eighth fund, has played a crucial role in the firm’s evolution. Earlier this year, Kushner sold a 3.3% stake in Thrive to notable figures including Disney CEO Bob Iger and KKR founder Henry Kravis. This sale, which valued Thrive at $5.3 billion, left Kushner as the near sole owner with a 96.7% stake, cementing his status as a billionaire.

In a letter to investors, posted on Medium, Kushner expressed his excitement about Thrive IX and the future of technology. “We are humbled to announce the close of Thrive IX. The technological breakthroughs that will occur over the next years will be unlike anything we have ever experienced before,” Kushner stated. He emphasized Thrive’s unique approach, highlighting the firm’s focus on both people and ideas. “We make few investments per year, but our intensity and drive to support founders forge a bond that transcends good times and bad.”

Despite the challenging market conditions, particularly for tech investments that aren’t AI-focused, Kushner remains optimistic. “These are hard times for conventional wisdom, but this favors us,” he noted. Thrive’s long-term vision and commitment to investing in transformative companies align with its strategy to foster sustained growth and innovation.

Thrive Capital’s latest fundraising success underscores its strategic positioning and the value of its high-profile investments. As the firm prepares for the next chapter with Thrive IX, it remains committed to driving technological advancements and supporting visionary companies poised for long-term impact. The firm has also recently expanded its team, adding former Benchmark partner Miles Grimshaw as a general partner in March 2024.

welcome home @milesgrimshaw pic.twitter.com/dhtVIKekpc

— Joshua Kushner (@JoshuaKushner) March 5, 2024

Kushner concluded his letter with a note of gratitude: “I am deeply appreciative of the founders we are fortunate enough to work with, and our limited partners for walking this path with us. Their unwavering support and belief in Thrive underlie everything we achieve together.”