Biography of Peter Thiel: Entrepreneurship, Investment, and Influence
Biography of Peter Thiel:
Peter Andreas Thiel, born on October 11, 1967, is an
American entrepreneur, venture capitalist, and political activist. He played
key roles in founding successful companies like PayPal, Palantir Technologies,
and Founders Fund, and was the first outsider to invest in Facebook. His
estimated net worth as of June 2023 was $9.7 billion, ranking him 213th on the
Bloomberg Billionaires Index. As of April, 2024 his net worth is around $6.7
billion.
Thiel's career journey began as a securities lawyer at
Sullivan & Cromwell, then as a speechwriter for former U.S. Secretary of
Education William Bennett, and later as a derivatives trader at Credit Suisse.
In 1996, he founded Thiel Capital Management and co-founded PayPal in 1998,
serving as its CEO until its sale to eBay in 2002 for $1.5 billion.
After PayPal, Thiel founded Clarium Capital, a global macro
hedge fund, and launched Palantir Technologies in 2003, a big data analysis
company where he has been chairman since its inception. In 2005, he co-founded
Founders Fund with PayPal partners, and in 2010, he co-founded Valar Ventures.
Thiel also co-founded Mithril Capital in 2012 and served as a part-time partner
at Y Combinator from 2015 to 2017.
Early Years and Family Background
Peter Thiel was born on October 11, 1967, in Frankfurt am
Main, West Germany. His family relocated to the United States when he was a
year old, settling in Cleveland, Ohio. Thiel's father worked as a chemical
engineer, leading to a nomadic childhood as the family moved frequently due to
his father's job. Despite this, Thiel's mother became a U.S. citizen, while his
father did not, and eventually, Thiel himself became a U.S. citizen, relinquishing
his German citizenship.
Childhood Adventures and Influences
Before settling in California in 1977, Thiel's family lived
in South Africa and South West Africa (now Namibia), contributing to Thiel's
diverse upbringing. He attended several elementary schools, including one in
Swakopmund, where he experienced a strict and regimented environment, shaping
his later views on individualism and libertarianism. Thiel developed a love for
fantasy literature, particularly the works of authors like J.R.R. Tolkien,
influencing even the names of some of his ventures.
Academic Excellence and Intellectual Development
Thiel demonstrated exceptional mathematical aptitude during
his schooling, even winning a statewide mathematics competition while in middle
school. He continued to excel academically at San Mateo High School, where he
was valedictorian of his class in 1985. His intellectual pursuits expanded into
philosophy at Stanford University, where he co-founded a conservative and
libertarian newspaper, The Stanford Review, in response to cultural shifts on
campus.
Journey Through Higher Education
After completing his undergraduate studies, Thiel pursued a
Juris Doctor degree at Stanford Law School, which he earned in 1992. During his
time at Stanford, he encountered the influential thinker René Girard, whose
mimetic theory left a lasting impression on Thiel's worldview. This theory,
emphasizing the role of imitation and competition in human behavior, influenced
both his personal life and business ventures, guiding his approach to success
and fulfillment.
Early Ventures and Career Transition
After completing his legal clerkship, Thiel began his
professional journey by working as a securities lawyer in New York. However, he
quickly realized that the work lacked personal fulfillment, prompting him to
leave the firm and explore other opportunities. Thiel then ventured into
derivatives trading at Credit Suisse while concurrently serving as a
speechwriter for William Bennett, the former U.S. Secretary of Education.
Dissatisfied with the corporate environment, Thiel returned to California in
1996, eager to pursue new avenues.
Entry into Venture Capital
Back in the Bay Area, Thiel found himself in the midst of
the dot-com boom, a period of rapid growth in the technology industry.
Leveraging financial support from his network, he established Thiel Capital
Management and delved into the realm of venture capital. Despite facing
setbacks, such as an unsuccessful investment in a web-based calendar project,
Thiel remained undeterred. His fortunes changed when he teamed up with Luke
Nosek and Max Levchin to launch their first successful venture, initially named
Fieldlink and later rebranded as Confinity in 1998.
PayPal: Revolutionizing Online Payments
Thiel's Vision for PayPal: Empowering Financial Freedom
Peter Thiel's vision for PayPal stemmed from recognizing a
gap in the online payment landscape. With Confinity, he saw an opportunity to
create a digital wallet solution that would provide convenience and security to
consumers making online transactions. Launched in 1999, PayPal aimed to
liberate people from the limitations of traditional currency, offering a more
convenient and secure alternative accessible from any digital device.
PayPal's Expansion and Mergers: Transforming Online
Transactions
Thiel articulated PayPal's mission as not just facilitating
transactions but also combating the erosion of currency value caused by
inflation. He envisioned PayPal as a tool that would empower individuals
worldwide, particularly in developing countries, where unstable currencies
often led to financial insecurity. By providing a reliable means of storing and
transferring money, PayPal aimed to give people greater control over their
finances and protect them from governmental currency manipulation.
PayPal's Triumph: From Public Listing to Acquisition
The launch of PayPal marked a significant milestone in the
evolution of digital payments. Thiel's strategic foresight and commitment to
innovation attracted venture funding, with notable endorsements from companies
like Nokia and Deutsche Bank. PayPal's subsequent mergers, particularly with
X.com and Pixo, facilitated its expansion into new markets and enhanced its
user experience, making it a safer and more accessible platform for online
transactions.
Thiel's Influence: The "Don" of the PayPal Mafia
PayPal's success culminated in its public listing in 2002
and its subsequent acquisition by eBay for $1.5 billion later that year.
Thiel's leadership was instrumental in PayPal's growth, and his stake in the
company earned him substantial returns. Within Silicon Valley, Thiel earned the
moniker "Don of the PayPal Mafia," reflecting his influential role in
shaping the tech industry landscape.
Creating Clarium Capital: Thiel's Investment Venture
Peter Thiel invested $10 million of his own money to start
Clarium Capital Management. It's a global hedge fund that focuses on making
money from changes in big economic trends like currency values, interest rates,
and prices of things like oil and stocks. Thiel's main idea behind Clarium was
that the world's oil supply was running out, and there weren't any easy
replacements.
Early Wins and Insightful Bets
In 2003, Thiel made a smart move by betting that the value
of the U.S. dollar would go down, and he was right. The next year, he talked
about how the problems that caused the dot-com bubble to burst were moving into
the financial sector. Thiel even pointed out that companies like General
Electric and Walmart might be in trouble. In 2005, Clarium made a big profit of
57.1% because Thiel guessed that the dollar would get stronger.
Challenges and Strategy Shift
Despite early successes, Clarium didn't do well in 2006,
losing 7.8% of its value. After that, the company changed its approach. They
started focusing on making money over the long term by predicting that oil
supplies would start to run out. In 2007, Clarium's value shot up by 40.3%,
reaching over $7 billion. But later that year, and in 2009, when the financial
markets crashed, Clarium lost a lot of money.
Investor Exodus and Asset Decline
By 2011, Clarium wasn't doing so well. Many of its big
investors pulled out, and the company's assets dropped to $350 million. Most of
that money, around two-thirds, belonged to Thiel himself.
Founding Palantir: Thiel's Data Analysis Venture
In May 2003, Peter Thiel established Palantir Technologies,
a company specializing in big data analysis. Inspired by the Tolkien artifact,
Thiel named the company Palantir. Thiel remains its chairman as of 2022,
continuing to guide its direction and growth.
Palantir's Mission and Inspiration
Thiel conceived Palantir based on the idea that the
fraud-fighting methods employed by PayPal could be adapted for broader
applications, such as combating terrorism. He recognized a need for innovative
approaches to balance security and privacy concerns, particularly following the
September 11 attacks. Thiel envisioned Palantir as offering data mining
services to government intelligence agencies that prioritize both effectiveness
and accountability.
Early Support and Growth
Palantir received initial backing from the Central
Intelligence Agency's venture capital arm, In-Q-Tel. With this support, the
company steadily expanded its operations and capabilities. By 2015, Palantir
had achieved a valuation of $20 billion, making it a significant player in the
data analysis industry. Thiel emerged as the company's largest shareholder,
underscoring his commitment to its success and vision.
Thiel's Early Investment in Facebook: A Game-Changing
Decision
In August 2004, Peter Thiel made a pivotal move by investing
$500,000 in Facebook, securing a 10.2% ownership stake in the company. This
marked the first significant external investment in Facebook, valuing the
social media platform at $4.9 million. Thiel also joined Facebook's board,
providing strategic guidance rather than hands-on involvement in its day-to-day
operations.
The Story Behind Thiel's Investment
Thiel's decision to invest in Facebook stemmed from a
recommendation by Sean Parker, the co-founder of Napster and at that time,
Facebook's "President." Initially approached by Reid Hoffman, the CEO
of LinkedIn, Parker directed Hoffman to Thiel due to their past connection from
the PayPal days. Thiel met with Parker and Facebook's founder, Mark Zuckerberg,
and was impressed by their vision. He agreed to lead Facebook's seed round,
offering $500,000 for a significant ownership stake, showing confidence in the
company's potential.
Thiel's Investment Strategy and Impact
Thiel's investment strategy was based on his belief in
Facebook's original vision and what he considered a reasonable valuation.
Despite some initial skepticism about growth in the consumer Internet sector,
Thiel maintained his confidence in Facebook's potential, considering it undervalued
relative to other internet companies. Thiel's strategic timing of investments,
including the 2007 Series D funding round, played a crucial role in Facebook's
financial stability during the 2008 financial crisis.
Financial Gains and Transition
Thiel reaped substantial financial gains from his investment
in Facebook. He sold a significant portion of his shares during Facebook's
initial public offering in May 2012, earning over $1 billion. Thiel continued
to sell more shares over the years, gradually reducing his holdings in the
company. In February 2022, after serving on Facebook's board for 17 years,
Thiel announced his decision not to seek re-election, citing a desire to
support political candidates aligned with his beliefs in the upcoming United
States elections.
Founders Fund: A Venture Capital Powerhouse
In 2005, Peter Thiel founded Founders Fund, a venture
capital fund based in San Francisco. Thiel teamed up with partners like Sean
Parker, Ken Howery, and Luke Nosek to establish the fund.
Diverse Investments:
Thiel, through Founders Fund and personally, made early
investments in a variety of startups. These include big names like Airbnb,
LinkedIn, SpaceX, and Spotify, among others. These investments helped kickstart
the growth of these companies.
Bitcoin Investment:
In 2017, Founders Fund made headlines by purchasing around
$15–20 million worth of bitcoin. By January 2018, the value of their holdings
skyrocketed to hundreds of millions of dollars, thanks to the surge in
cryptocurrency prices.
Clearview AI Investment:
In the same year, Thiel was an early investor in Clearview
AI, a startup specializing in facial recognition technology. This investment
stirred controversy due to concerns about the potential misuse of such
technology for surveillance and other purposes.
Biography of Peter Thiel: Entrepreneurship, Investment, and Influence /Biography of Peter Thiel:/ Peter Thiel:
Thiel's Ventures Beyond Founders Fund
Valar Ventures:
Thiel co-founded Valar Ventures with Andrew McCormack and
James Fitzgerald, focusing on international investments. One of their early
successes was investing in Xero, a software company based in New Zealand. They
also supported other New Zealand-based ventures like Pacific Fibre and
Booktrack.
Mithril Capital:
In 2012, Thiel launched Mithril Capital Management, inspired
by the mythical metal in "The Lord of the Rings." Unlike his previous
venture, Clarium Capital, Mithril aimed at companies beyond the startup phase,
ready to scale up. At launch, Mithril had a substantial fund of $402 million,
led by Thiel, Jim O'Neill, and Ajay Royan.
Y Combinator:
Thiel joined Y Combinator in 2015 as one of its part-time
partners. Y Combinator is a renowned startup accelerator program. However, by
November 2017, reports emerged that Y Combinator had severed its ties with
Thiel for undisclosed reasons.
Informant Allegations:
In 2021, Business Insider reported controversial claims that
Thiel had become an informant for the FBI. These allegations stirred
significant interest and discussion in the media and tech circles.
Peter Thiel's Ventures and Influential Moves
Investment Success:
Peter Thiel has invested in some of the world's most
valuable startups, including Stripe and SpaceX, known as unicorns.
Additionally, he co-founded Palantir, a big data company supported by the CIA,
which went public in 2020.
Facebook Connection:
Thiel was an early supporter of Facebook, but he has mostly
sold off his shares in the company and stepped down from its board in 2022. His
investments have been diverse and impactful, spanning multiple sectors and
technologies.
Supporting Young Entrepreneurs:
Through his Thiel Foundation, Thiel helps young
entrepreneurs by providing them with financial support to pursue their business
dreams instead of attending college. This initiative aims to encourage
innovation and entrepreneurship among young talents.
Criticism of Silicon Valley:
Thiel made headlines when he moved from San Francisco to Los
Angeles in 2018, criticizing Silicon Valley for its perceived lack of diversity
in thought and its dominance by a single political ideology. His move
highlighted broader discussions about the tech industry's culture and
influence.
Peter Thiel's Political Views and Engagements
Conservative Libertarian to National Conservatism:
Peter Thiel identifies himself as a conservative
libertarian, but in recent times, he has shown support for national
conservatism. He has criticized economically liberal stances on free trade and
big tech companies.
Critique of Political Correctness:
In 1995, Thiel co-authored "The Diversity Myth"
with David O. Sacks, criticizing political correctness and multiculturalism in
higher education. They argued against affirmative action, contending it led to
increased segregation rather than fostering diversity.
"The Straussian Moment":
Thiel's 2004 essay, "The Straussian Moment," is
considered pivotal in his political philosophy. It discusses how the September
11 attacks necessitated a reevaluation of modern politics, drawing on various
political theorists.
Critique of Democracy:
In a 2009 essay, Thiel expressed skepticism about the
compatibility of freedom and democracy, particularly citing challenges with
certain constituencies. He advocated for technological innovations, such as
cyberspace and space colonization, to establish new realms of freedom beyond
traditional politics.
Technology and Regulation:
Thiel highlighted the disparity between innovation in
computing/IT and stagnation in physical sectors like space travel and medical
devices in a 2015 conversation. He attributed this to regulatory differences
between digital and physical realms.
Concerns About Google:
In 2019, Thiel accused Google of being "seemingly
treasonous" due to its collaborations with China. He called for a
government investigation, questioning potential infiltration by foreign
intelligence agencies.
Involvement with Bilderberg Group:
Thiel is a member of the Steering Committee of the
Bilderberg Group, an annual gathering of influential figures from various
fields, including politics, business, and academia.
Peter Thiel's Philanthropic Ventures
Thiel Foundation:
Peter Thiel channels most of his philanthropic efforts
through the Thiel Foundation, which supports various causes and initiatives.
Artificial Intelligence Research:
Thiel has been a significant supporter of artificial
intelligence research. He provided funding to the Singularity Institute for
Artificial Intelligence (now the Machine Intelligence Research Institute) and
OpenAI, aiming to promote safe development in AI.
Life Extension Research:
Thiel is also invested in life extension research. He
pledged millions to the Methuselah Mouse Prize foundation, aiming to advance
anti-aging research and improve health and longevity.
Seasteading:
Thiel pledged substantial amounts to the Seasteading
Institute, supporting the creation of autonomous ocean communities to explore
diverse social, political, and legal systems.
Thiel Fellowship:
In 2010, Thiel established the Thiel Fellowship, awarding
$100,000 annually to encourage young people under 23 to pursue entrepreneurial
ventures, challenging the traditional path of college education.
Breakout Labs:
The Thiel Foundation created Breakout Labs in 2011,
providing grants to science-focused startups to foster innovative research outside
traditional institutions.
Support for Journalists and Human Rights:
Thiel Foundation supports the Committee to Protect
Journalists and the Human Rights Foundation, advocating for journalistic freedom
and human rights globally.
Christchurch Earthquake Relief:
Thiel donated a significant amount to the Christchurch
earthquake relief fund in 2011, demonstrating his commitment to humanitarian
causes.
Insights into Peter Thiel's Personal Life and Ventures
Marriage and Relationships:
In October 2017, Peter Thiel married his long-time partner,
Matt Danzeisen, in Vienna, Austria. Danzeisen works as a portfolio manager at
Thiel Capital. Thiel was previously in a relationship with Jeff Thomas, a
social media influencer, until Thomas' sudden passing in March 2023.
Religious Beliefs:
Thiel identifies as a Christian and is interested in René
Girard's Christian anthropology. He grew up in an evangelical household but
describes his beliefs as somewhat heterodox. Thiel has engaged in discussions
on religion, politics, and technology at Veritas Forum events.
Chess:
Thiel began playing chess at a young age and was once among
the top junior players in the United States. He holds the title of Life Master
but hasn't competed since 2003. Thiel made a ceremonial first move at the World
Chess Championship in 2016.
Media Appearances:
Thiel has appeared on CNBC and PBS, contributing articles to
various publications like The Wall Street Journal and Forbes. He has been
depicted in films and TV shows, such as "The Social Network" and
"Silicon Valley."
New Zealand Citizenship:
Thiel, originally a German citizen, obtained American
citizenship and permanent residency in New Zealand in 2011. His citizenship
application stirred controversy, as he was granted citizenship despite not
intending to live in New Zealand permanently.
Roth IRA:
In 2021, it was revealed that Thiel had turned a $1,700
investment in PayPal founder shares into a Roth IRA worth over $5 billion by
2019. This substantial growth was fueled by reinvesting in companies like
Palantir and Facebook.
Recognitions Received by Peter Thiel
Herman Lay Award for Entrepreneurship (2006):
Thiel was honored with the Herman Lay Award for
Entrepreneurship in 2006, recognizing his significant contributions to the
field.
Young Global Leader (2007):
In 2007, the World Economic Forum named Thiel as one of the
250 most distinguished leaders under the age of 40, acknowledging his impactful
leadership on a global scale.
Honorary Degree from Universidad Francisco Marroquin (2009):
Thiel was awarded an honorary degree by the Guatemalan
Universidad Francisco Marroquin in November 2009, recognizing his exceptional
achievements.
Students For Liberty "Alumnus of the Year" Award
(2012):
In 2012, Thiel received the "Alumnus of the Year"
award from Students For Liberty, an organization dedicated to promoting
libertarian ideals on college campuses.
TechCrunch Crunchie Award for Venture Capitalist of the Year
(2013):
Thiel was honored with the TechCrunch Crunchie Award for
Venture Capitalist of the Year in February 2013, acknowledging his outstanding
contributions to the venture capital industry.
Legacy
Peter Thiel has played instrumental roles in various
companies across industries. As the Co-Founder and Chairman of Palantir
Technologies, he has steered the company's strategic direction, while also
serving as a Board Member at Chapter, providing valuable insights to the
organization. Thiel's influence extends to the biotechnology sector, where he
serves as a Board Member at AbCellera, contributing to advancements in the
field. Additionally, he founded Thiel Capital, guiding the investment firm in
identifying promising ventures. Thiel's past roles include serving on the
boards of Meta Platforms and Asana, as well as being President of Thiel Capital
and a Partner at Founders Fund. His early success came with the co-founding of
PayPal in 1998, where he served as CEO, President, and Chairman until its
acquisition by eBay in 2002. Thiel also founded Clarium Capital Management,
where he currently serves as President, overseeing investment strategies.
Beyond his direct involvement in companies, Thiel serves as
an Advisor at Bullish and holds a Board Member & Advisor position at
Nanotronics, where he provides guidance and expertise. Throughout his career,
Thiel's contributions have spanned multiple sectors, from technology and
finance to biotechnology, showcasing his versatility and impact in driving
innovation and growth in various industries.
Some companies where he invested
- Enhanced Games - Media and Information Services (B2B)
- BeFake AI- Entertainment Software
- Lindus Health - Healthcare Technology Systems
- Whop - Specialty Retail
- Collectibles - Financial Software
- River - Financial Software
- HiNote - Communication Software
- Ondo Finance - Financial Software
- Pylon - Financial Software
- Quantum System - Aerospace and Defense
- Reddit – American social news aggregation
- Cadre – financial technology
- US Bitcoin – offering cost-effective mining, enabling consumers
- Granify – Advanced machine learning technology
- FairWorks – evaluates companies
- Glorify – all-in-one design software
- Breezeworks - Scheduling Software for Service Businesses
Timeline
October 11, 1967 - 1985: Peter Thiel's upbringing in West
Germany and Cleveland, Ohio, shapes his diverse background and intellectual
curiosity.
1985 - 1992: Thiel excels academically at Stanford
University and Stanford Law School, laying the foundation for his future
ventures.
1992 - 2002: Transitioning from securities lawyer to
derivatives trader, Thiel founds Thiel Capital Management and co-founds PayPal,
marking the beginning of his entrepreneurial success.
2003 - 2005: Thiel establishes Palantir Technologies and
Founders Fund, solidifying his presence in the tech and venture capital
spheres.
2005 - Present: Thiel's investments in companies like
Facebook and SpaceX, alongside his involvement in organizations like Valar
Ventures and Mithril Capital, showcase his diverse portfolio and significant
influence.
2006 - Present: Thiel's philanthropic initiatives through
the Thiel Foundation and political engagements reflect his broader impact on society
beyond business ventures.
2017 - Present: Thiel's personal life, including his
marriage and religious beliefs, alongside his legacy as an entrepreneur,
investor, and philanthropist, continue to shape his narrative and influence.
