NYT/Dealbook: Peter Thiel Opens a New Venture Capital Firm

The New York Times – June 20, 2012

Dealbook’s Evelyn M. Rusli reported on Peter Thiel’s new venture capital firm, Mithril Capital Management, a $402 million global fund. The new endeavor, led by Mr. Thiel and a former Clarium managing director, Ajay Royan, will seek “growth” opportunities — start-ups that have already raised some venture capital and are looking to ramp up significantly.

“We’re looking for inflection points,” Mr. Royan said. “We’re not looking for companies that are a done deal; we want companies that are about to hit a growth stage.”

By standing in the middle of the venture capital spectrum — between the early stage and pre-I.P.O. stage — Mr. Thiel and Mr. Royan are also making an interesting bet on the market. The early side has been flush with cash, thanks to a glut of new angel investors. The late stage, meanwhile, has benefited from the largesse of investors like Russian billionaire Yuri Milner and venture capital firms hoping to catch companies before they go public. But the middle of this barbell is thin on investors, creating an opportunity for firms like Mithril.

“Two years ago, we were watching what was happening in the Valley and beyond.” Mr. Royan said. “There is not enough capital in the intensive growth stage.”

Read the full story here.