Thrive Capital raises $10 billion for its 10th fund

Thrive Capital has closed its 10th fund, dubbed Thrive X, raising $10 billion in an oversubscribed round. According to a report by Bloomberg, the fundraise was oversubscribed, meaning demand exceeded the amount of capital the firm intended to raise. The new vehicle represents the largest fund the firm has ever raised, nearly double the size of its last fund.

According to the firm’s announcement, the capital will be split to target different phases of company growth:

• $1 billion is dedicated to early-stage investments.
• The remainder is allocated for growth-stage investments.

The firm’s investment strategy centers on concentration rather than broad exposure. In its announcement, Thrive Capital stated that its approach is to “commit deeply to a small number of founders,” explaining that “Concentration demands loyalty to the founders and missions we back.” This concentrated approach is reflected in how the firm manages its portfolio.

Distinct from its direct investment strategy, Thrive Capital also operates an incubation program to build startups from the ground up. The firm has spun up 12 companies so far. Out of these incubated businesses, at least six have reached unicorn status, meaning they are privately held startups valued at over $1 billion.

Josh Kushner, the founder of Thrive Capital, remains bullish on the artificial intelligence sector. Speaking to Bloomberg, Kushner stated that he believed the winners of the AI boom would “be bigger than we can ever imagine,” noting that the technology is still nascent.

The scale of the new fund comes as several of Thrive Capital’s major portfolio companies continue to soar in value. These include artificial intelligence company OpenAI, financial services and software company Stripe, and aerospace manufacturer and space transportation company SpaceX. Other notable investments in the firm’s portfolio include data and AI company Databricks, defense technology company Anduril, and AI-powered code editor company Cursor.

The massive raise also highlights the potential for upcoming liquidity events for limited partners—the investors in the fund—who are awaiting returns. Rumors of potential initial public offerings (IPOs) have circulated around major portfolio companies, particularly OpenAI and SpaceX. Potential listings for these two companies could lead to an unprecedented flow of capital back to the fund’s investors.

Why it matters

Thrive Capital’s record-breaking raise underscores its commitment to a concentrated, growth-heavy strategy. It also sets the stage for potential liquidity events for investors as major portfolio companies like OpenAI and SpaceX mature.