It has been claimed that Thrive Capital, well-known for its major support of OpenAI, is preparing to raise a sizeable $3 billion amidst a decline in technology funding.
The Financial Times (FT) reported on January 7 that Thrive Capital is still in the early phases of its planned fundraising, but that it is expected to formally begin in the upcoming months, citing sources with knowledge of the situation. With this change, Thrive is now one of the few sizable growth funds actively looking for new ventures.
According to investors who are aware of Thrive’s ambitions, the fundraising campaign will be a key gauge of investor mood. One investor said, “It’s not going to be a slam dunk.” “I’d expect investors to scrutinize funds attempting to raise capital at pre-2020 levels.” The investor pointed out that institutional investors are expected to meet tougher standards in the current market, which reflects caution when it comes to investing additional cash.
The larger picture highlights the difficult environment that venture capital (VC) funding faced in 2023, as it declined significantly from prior years. Globally, venture capital investors raised $67 billion last year, which was more than 50% less than the previous year and the lowest amount since 2017. The startup environment has been affected by this downturn, which has resulted in large layoffs and less prospects for liquidity events.
Thrive’s confidence in properly allocating capital is demonstrated by its choice to undertake a $3 billion offering in the current market conditions. The company’s strategic endeavors, such as its investments in OpenAI, demonstrate its dedication to promoting revolutionary technology in spite of wider market uncertainty.
Market watchers will probably keep a close eye on Thrive Capital’s fundraising efforts as a sign of investor interest and faith in the IT industry’s ability to weather economic storms. As formal fundraising is anticipated to begin soon, Thrive’s capacity to draw in money will be widely monitored as a barometer of investor mood in a changing investing environment.
