PayPal Founder's Investment Firm Raises $250 Million

PayPal co-founder Peter Thiel's venture capital firm, Founder's Fund, has raised $250 million in funding.

The additional funding will allow the company to make strategic investments in innovative technology start-up companies.

The investment firm is focusing on companies that are working towards developing new technologies in the realms of the internet, science and engineering.

The company said in a statement that the money raised will be used for the new Founder's Fund III.

According to data released by the National Venture Capital Association, the amount raised by venture capital funds in the second quarter of 2010 fell by 56 per cent, ending at $1.9 billion, the lowest figure since 2003.

In a statement, Founder's Fund co-founder Ken Howery said: “Despite years of cynicism and low returns in the industry, our companies show that there are compelling opportunities in several categories for bold investors.”

The company was one of the earliest investors in social networking platform Facebook.