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private equity
The Quick Gutting of Peter Thiel's Clarium Capital
The June numbers are in, and Peter Thiel's hedge fund is looking puny, having shrunk to just $1.5 billion in assets, from $7.8 billion in June 2008. Placed in an historical context, the PayPal co-founder's fund looks even worse. More » -
politics
Facebook Backer Peter Thiel Wants You to Know Environmentalism Will Kill Us All
Peter Thiel's objectivism and anti-immigration donations were hard enough for Silicon Valley colleagues to stomach. This attack ad he helped fund against climate-change legislation should be even less popular among California's Tesla-driving, cleantech-obsessed venture capitalists. More » -
private equity
Peter Thiel's Depressing May
Even as Wall Street rallied last month, Peter Thiel's hedge fund lost close to $25 million, according to leaked documents obtained by Valleywag. Maybe this is why the PayPal founder has been grumpily calling people "frauds." More » -
never forget
Peter Thiel: 'Valleywag is the Silicon Valley Equivalent of Al Qaeda'
Peter Thiel, the Facebook investor and PayPal co-founder, has never been shy about making incendiary statements. Now he's turned his guns on us.
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housekeeping
Valleywag: An Instruction Manual
Dear Ryan:
As I head to NBC to run its Bay Area site, I'm leaving you one Silicon Valley gossip blog, used but in good condition. A few thoughts on how to keep it that way. More » -
schadenfreude
Peter Thiel's Richer Than You, But Not as Rich as He'd Like You to Think
It's one of many casually accepted, unchecked assumptions in Silicon Valley: Peter Thiel, the cofounder of PayPal and Facebook investor, is a billionaire, right? Leaked documents from his hedge fund, Clarium Capital, show he's not. More » -
principles
Give Me Liberty or Give Me Taxpayer Money
Clever libertarians don't just rail against government spending: They do something about it. Facebook investor Peter Thiel took $8 million from New York's pension fund — while setting himself up to avoid millions in taxes. More » -
nerdfight
Rachel Maddow, Peter Thiel Show Why Gays and Lesbians Can't Get Along
What a fight! In one corner, Rhodes scholar Rachel Maddow, the liberal lesbian MSNBC commentator. In the other, arch libertarian chess master Peter Thiel, the gay Facebook investor. Best of all, they've squared off before. More » -
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silicon valley tool
Facebook Backer Wishes Women Couldn't Vote
Peter Thiel, foremost among Silicon Valley's loopy libertarians and the first outside investor in Facebook, has written an essay declaring that the country went to hell as soon as women won the right to vote.
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schadenfreude
The Peter Thiel Bubble
Peter Thiel, so-called visionary, is working CNBC hard at Davos. Why would that be the case? His hedge fund is $5 billion smaller than it was six months ago. More » -
peter thiel
Billionaire Facebook investor's anti-immigrant heresy
Insiders at Clarium Capital, the $5.3 billion hedge fund run by Facebook investor Peter Thiel, are buzzing about their boss's $1 million donation to NumbersUSA, an anti-immigrant group. The donation is an open secret within Clarium, and it has enraged several staff members who joined Clarium because they believed Thiel shared their libertarian ideals. When I asked Thiel if he'd made the donation, an underling passed on a nondenial saying the company didn't comment on "gossip and heresy." A typo — he meant to say "hearsay" — but a suggestive one. Thiel has fallen under the sway of Robertson "Rob" Morrow III, a Christian right-wing thinker who has personally donated to NumbersUSA, and persuaded Thiel to make his own, much larger donation. More » -
schemes
Is Elon Musk aiming to take over Tesla?
Tesla Motors, Silicon Valley's troubled electric carmaker, is still running on financial fumes, with $9 million or less in the bank. It's been widely misreported that the company has already raised $40 million. In fact, that's the amount it's hoping to raise, in the form of convertible debt, from current investors in a rights offering, which will take 30 days to complete. Musk made a fortune from PayPal, the online payments startup purchased by eBay, and other startups. He says he has enough money to take the entire round if other investors don't step up. And that may be exactly what he's hoping will happen. More » -
peter thiel
Clarium Capital's billion-dollar loss
Remember Clarium Capital, the $7 billion hedge fund run by former PayPal CEO Peter Thiel? Oops: Make that the $5.2 billion hedge fund run by Thiel. The fund was down 18 percent in October alone. August was also a disastrous month, as Thiel's bets on the economy went sour. After running up 58 percent from January to June, it's now down 3 percent for the year. Thiel is also an investor in Facebook, but that doesn't seem like much of a hedge right now. -
rob morrow
Peter Thiel underling backs anti-immigrant group
A source within Clarium Capital, Facebook investor Peter Thiel's multibillion-dollar hedge fund, claims that Thiel has just donated $1 million to NumbersUSA, the largest anti-immigration group in the U.S. Another source denies that Thiel made the donation — but Rob Morrow, a principal at Clarium and close Thiel associate, has backed the group with a small donation of $1,000 or less. NumbersUSA likes to position itself as an "immigration reduction" organization; it seeks to roll back legal immigration limits to pre-1965 levels. Morrow's support of the cause is inevitably embarrassing for Thiel. More » -
crash this bash
Party GOP-style with Meg Whitman and Carly Fiorina
We don't know if our tipster was drunk or if the event got relocated after we wrote about it, but Lead21's election-night viewing party, which we had heard was due to be held at the house of Facebook board member Peter Thiel, is now taking place at Jones, a sports bar and steakhouse in San Francisco near Thiel's Marina-district mansion. (The rationale for the locale: Jones has more televisions for watching the results.) Thiel is a major player in Lead21, and has hosted previous election-night parties for San Francisco's Republican minority, we're told, but he may skip this one because of his travel plans. Still, if you want to get a gander of guests of honor Meg Whitman and Carly Fiorina, the tech CEOs turned McCain advisors, show up at Jones starting at 5 p.m. The bar remains open to the public during the event, so you're not technically crashing. (Photo by AP/Dharapak) -
politics
Party with Peter Thiel, Log Cabin Republican!
"Where have Silicon Valley's Republicans gone?" laments CNET News writer Declan McCullagh. George W. Bush backer Tim Draper has switched to the Obama team. There are a few stalwarts: Former Valley CEOs Meg Whitman and Carly Fiorina have campaigned for McCain. And the two are going to be special guests at an election-night party thrown by Lead21. The group, which describes itself as "an influential political organization formed by entrepreneurial business leaders," is coy about the location of the party. More » -
meltdowns
Facebook investor hopes for fewer quants
Peter Thiel, the billionaire hedge-fund manager, Facebook board member, and ex-CEO of PayPal, hopes that Wall Street's crisis will prompt "more talented people going into things like real engineering, as opposed to financial engineering." Thiel should be careful what he wishes for: His fund lost $1 billion in August, thanks to wrongheaded financial engineering. [Fortune] -
max levchin
Please don't post photos of my wedding to Slide
Slide founder Max Levchin made longtime lover Nellie Minkova an honest woman on Saturday. The ceremony was held at San Francisco's St. Regis Hotel, and featured HotOrNot cofounder James Hong as best man, with fellow PayPal mafioso Peter Thiel another groomsman. Gracious enough for the couple to refuse gifts besides books and wine, considering how many zeros Levchin can count toward his (and now their) wealth. However, rather ironic that the bride and groom asked guests not to upload any pictures from the ceremonies online for "privacy" reasons. More » -
Forbes 400
Zuckerberg's paper wealth puts him ahead of backer Peter Thiel on Forbes list
Forbes is out with its annual list of the 400 Richest Americans again and thanks to Microsoft, Facebook CEO Mark Zuckerberg is on it at number 321 with an estimated net worth of $1.5 billion. What's kind of ridiculous is that according to the list, Zuckerberg has more money than his original backer, founder of the Clarium Capital hedge fund and PayPal, Peter Thiel. More » -
conflicts of interest
Was TechCrunch50 rigged?
The anointing of Yammer as the winner of TechCrunch50 has raised questions about how the startup-launch conference operates. Michael Arrington, the founder of TechCrunch, has made much of the fact that he and fellow event organizer Jason Calacanis don't charge startups to present at the show, as established rival Demo does. But people who attended the show are saying behind his back that the contest was rigged in favor of a pet startup of Arrington's with ties to one of the event's sponsors. More » -
schadenfreude
Facebook backer Peter Thiel loses almost $1 billion in a month
Everyone's so gentle with Peter Thiel, the fabulously wealthy Facebook investor and hedge-fund manager. Even Bloomberg: The news service recently reported that his $7 billion firm, Clarium Capital Management, saw its funds drop 13 percent in August, thanks to a costly bet against a rallying dollar. We'll do the math, since Bloomberg was too polite: That's roughly $900 million gone in a month — a loss bigger than the paper value of his 5 percent stake in Facebook. Thiel just lost orders of magnitude more money than most of us might ever dream of making. More » -
Next Establishment
Once again, Vanity Fair leaves geeks at the kids' power table
Preeminent among the magazine world's kingmaking power lists is Vanity Fair's New Establishment, which appears in the October issue — on newsstands in L.A. and New York today, but not in the Bay Area for another six days. Silicon Valley gets similar short shrift: The names who make it there are predictable bigs like Steve Jobs and Larry Ellison, or Hollywood-crossover types like Jeff Skoll, eBay's first employee turned movie producer. Walt Mossberg, now employed by New Establishment perennial Rupert Murdoch, also squeaked in. The consolation prize Vanity Fair offers: Its "Next Establishment" list, reserved for the likes of Twitter's Ev Williams. It's a marvelous piece of New York media trickery — flatter the geeks by making them feel included, but corral them into a side room so the real power brokers aren't offended by comparison. True, the "Next Establishment" suggests that these are people who might matter in the future. But in saying that, Vanity Fair's editors are also sending the message that right here, right now, its "Next" nominees are nobodies. On this year's list: More » -
venture capital
Forgotten YouTube founder Jawed Karim prefers Minnesota to the Valley
The other YouTube cofounder, Jawed Karim, has all the good ideas. First, according to an interview Karim gave the New York Times in 2006, he was the one came up with the idea of a video-sharing site that would eventually sell to Google for $1.65 billion. Second, he's also the one who, even before collecting Google's millions, smartly realized he didn't need to stick around to see how things turned out. Karim headed back to Stanford to finish his Ph.D., which he's still working on. Now, on the side, Karim's decided to take on what his former PayPal colleague Peter Thiel calls a "cushy" profession and become a startup-seeding venture capitalist, reports the Minneapolis Star-Tribune. Maybe Karim's idea-well has gone dry? Karim's firm, the awkwardly named Youniversity, will focus on college students in Minnesota and ignore Silicon Valley. The Valley, Jawed told the Star-Tribune, "has a lot of noise." More » -
spinoffs
Even eBay wishes PayPal weren't part of eBay now
PayPal's CEO is talking up the company's business handling payments on websites other than eBay. Where have I heard this before? Oh yes: In April 2002, when I had coffee with Peter Thiel, then the CEO of PayPal as an independent concern. He talked up the prospects of growing PayPal's business on other websites. He agreed to sell PayPal to eBay for $1.5 billion that July, and left three months later. And then I heard the story again, and again, and again, as eBay pushed a number of forgettable executives through the revolving door of PayPal's executive suite. More » -
venture capital
Peter Thiel funds Elon Musk's sputtering rocketships
Peter Thiel fought viciously with Elon Musk in the early part of this decade; after they merged their companies to form with PayPal, they wrestled for control, with Thiel emerging victorious as the CEO who led the company through an IPO and a $1.5 billion sale to eBay. At the time, Musk was the richer, having sold a forgotten company to another forgotten company for an unforgettable $220 million. The two have long since made up — and a lucky thing for Musk, who now finds himself a supplicant to Thiel. Thiel's venture capital firm, the Founders Fund, has agreed to invest $20 million in Musk's faltering SpaceX, a rocket-ship startup whose latest vehicle crashed into the Pacific Ocean rather than soaring into the beyond. More » -
developers, developers, developers
Facebook to spend another $2 million trying to prove it's worth $15 billion
Facebook announced it will pay out $2 million to winners of its second fbFund developers' competition. 25 first-round winners will get $25,000 each, and five second-round winners will win $250,000. The money comes as a grant, not an investment, with the only stipulation being that Facebook backers Accel and Peter Thiel's Founders Fund get the right of first refusal for any investment rounds in the future. More » -
envy
Does Nick Denton wish he were Peter Thiel?
"Thiel makes me sick!" read the note from Gawker Media publisher Nick Denton. His oddly personal declaration was prompted by a brief in the New York Post about former PayPal CEO Peter Thiel's success as a hedge-fund manager. Thiel will make an estimated $500 million this year running Clarium Capital, a hedge fund. (We reported this a few weeks ago, boss.) It hit me hard: Could Denton actually be jealous of Thiel? More » -
facebook
Marc Andreessen to officially join Facebook board this week
Facebook will announce this week that it's brought Silicon Valley wunderkind turned Web 2.0 grumpy grandpa Marc Andreessen onto its board of directors. Andresseen will fill one of the two open seats on Facebook's five-person board. Founder Mark Zuckerberg and investors Peter Thiel and Jim Breyer make up the rest. More » -
private equity
Peter Thiel showing Wall Street how it's done at Clarium Capital
Known best in the Valley for co-founding PayPal and serving on the board of highly-valued Facebook, on Wall Street Thiel is becoming better known as a hedge-fund wunderkind — Clarium Capital, the fund Thiel manages, is well past $3 billion may have already hit the $6 billion mark. The fund's take for taking care of all that business? $500 million by the end of the year, according to estimates by 1440 Wall Street. But then you need that kind of money for retirement if you plan to live forever on a man-made island. (Photo by David Orban) -
nerdfight
Zivity sparks Girl Geek porn panic
Cyan Banister's Zivity seemed a natural choice to participate at the second Bay Area Girl Geek dinner, a networking event celebrating women in tech. At the last one in January, over 600 guests assembled at Google's HQ to hear tales of ladypower from female CEOs, founders, engineers, and VCs. Banister, a former systems administrator and network engineer, is the cofounder of Zivity, a social networking site driven by female users sharing sexy photos of themselves. The Zivity motto is "It's not porn." Call what you will pretty women getting paid for making and posting naked photos of themselves. As Zivity's Chief Strategy Officer, Banister was honored to accept the Girl Geeks' invite over five months ago, including their idea to have Zivity bring two female photographers along to lens red-carpet style shots of arriving guests who were up for it. This is where the cocktail of sex, girls, tech, and cameras got complicated, and the collective panties of some female industry "thought leaders" got blogged into a painful bunch. And it had about nothing to do with porn. More » -
geek love
iJustine and Justin dating — but not that Justin
A tipster tells us that Justine Ezarik, the diminutive videoblogger better known as iJustine, has hooked up with a guy named Justin. Not the unprepossessing and socially inept Justin Kan of Justin.tv, with whom she's often jokingly linked, but Justin Fishner-Wolfson, a venture-capital associate at Peter Thiel's Founders Fund. The two make an adorable couple, our tipster says, especially because they see eye to eye. He estimates Ezarik's height at 5'1"; Fishner-Wolfson's not much taller, as his Stanford graduation photo shows. Not that his stature matters: By dating Ezarik, he rises above thousands of jealous iJustine fanboys. Update: Ezarik denies that she and Fishner-Wolfson are an item — and claims to be 5'3". (In heels, perhaps.) -
online video
Vator.tv looking to sell to CBS?
How did the blogs which reposted Bambi Francisco's Vator.tv interview with CBS Interactive's Mike Marquez all miss the obvious subtext? Francisco spends much of the interview asking about the company's plans for future acquisitions, getting Marquez to share that they are looking to purchase and partner with anything video-related, particularly well-produced, professional content. Kind of like Vator.tv! More » -
crime
Vancouver couple offers baby for sale on Craigslist
A Vancouver couple listed their week-old newborn for sale on Craigslist for $10,000, prompting a horrified user to call the police. When the cops arrived, they found the tyke breastfeeding and the parents claimed it was a hoax. Which didn't stop the authorities from confiscating the baby. Susan MacTavish Best issued the by-now boilerplate statement that reads "Misuse of Craigslist for illegal purposes is absolutely unacceptable to us." Those kooky Canadians just hate the free market. When they aren't unjustly subverting self-interest with their free health care, they're criminalizing the trade in human babies. Once Peter Thiel builds his Objectivist paradise at sea, expect him to make another fortune on PayBaby. (Photo by Badr Naseem) -
breakdowns
PayPal closes the border
When Peter Thiel launched PayPal a decade ago, he had a vision of a global payments mechanism which would accelerate the withering-away of the nation-state. And then he sold it to eBay. eBay's latest failure to transform the international monetary system is quite literal; for almost two weeks, PayPal has had a bug which prevents it from collecting cross-border payments for subscriptions — this while its new president, Scott Thompson, has been touring the globe. The error: a bit of code in a drop-down menu. Subscriptions are a small part of PayPal's business, though vital to the complaint-prone blogging class. Regardless, it's a trivial bug that should have taken minutes, not weeks, to fix; that eBay has not yet done so would seem to speak to a profound rot in its technical organization — which Thompson headed up as CTO before his promotion. -
once you're lucky, twice you're good
T is for Twitter, which turned blogging small
Twitter, the 140-characters at a time blogging service, was shaped by its founder's dry, understated sense of humor. The company, not to mention the service, seems to be a sort of Silicon Valley inside joke that, improbably, Ev Williams and his fellow Twitterers have managed to play on the rest of the world. For this, Sarah Lacy labels Williams a "nontrepreneur." Fittingly, Sarah Lacy gave his microcompany got a mere four pages in her new book, Once You're Lucky, Twice You're Good: More » -
internet famous
Facebook investor Peter Thiel No. 10 in Out's list of powerful gays
Peter Thiel, the famed venture capitalist who cofounded PayPal and funded Facebook, has not spoken about his private life since Valleywag broke the curious silence about the gay entrepreneur's sexuality in December. (He hadn't really discussed it before then, either.) But it has again become the topic of conversation. Out has put him in tenth place on its Power 50 list of prominent gays and lesbians. The magazine praises him for his multibillion-dollar hedge fund (Out says it's worth $3 billion, but we've heard $5 billion) as well as his $1 billion stake in Facebook and his funding of the Methuselah Foundation, an anti-aging research group. Knowing Peter, we suspect that none of this bothers him particularly — except for the fact that he wasn't No. 1. -
hires
Andreessen to stack Facebook board further in Zuckerberg's favor
Netscape cofounder and propagator of porn social networks Marc Andreessen will join Facebook's board of directors, Kara Swisher reports. Andreessen will join current board members Accel Partners Jim Breyer, Clarium Capital's Peter Thiel, and Facebook CEO Mark Zuckerberg. Andreessen is the chairman of Ning, a company which sells tools for rolling your own social network. If your mom has an excellent visual memory, she will probably remembers him for appearing on the cover of Time magazine without shoes on. You can tell her that he dresses better now, but only slightly. Why Andreessen, and not a proxy for new investors Microsoft or Li Ka-Shing? More » -
antitrust
Australians question eBay's PayPal-only policy
Years ago, PayPal was an independent company which fought constantly with eBay to be allowed on the site as a way to settle accounts after an auction was won. Now, years after eBay bought PayPal, the payments service is elbowing out all manner of competition. In Australia, eBay is limiting purchases to either PayPal or cash on delivery — no checks or money orders allowed, let alone rival electronic payment methods. In the U.S., eBay was sued last year for tying PayPal too closely to its online marketplace. How soon they forget: PayPal is aiming to quash an economic freedom its founders, including noted libertarian Peter Thiel, fought for. -
geek love
Forbes declares Peter Thiel "single," which may be news to his boyfriend
In its latest list of billionaire bachelors, Forbes lists Facebook investor and hedge fund Midas Peter Thiel as "single." Technically true, I'll give the magazine's factchecker that much, if it means "confirmed bachelor." Thanks to California's marriage laws, he doesn't have much choice in the matter. In fact, I hear Thiel is getting less single every day. One tipster close to his hedge fund, Clarium Capital, shares this rumor: that Thiel may have hired his boyfriend, Matt Danzeisen, away from BlackRock Securities, thereby discarding plans to relocate the fund's headquarters to New York. Aside from being convenient for the pair, it would seem like a good career move for Danzeisen. More »































