Key Takeaways
- • Peter Thiel and a venture firm backed by Australia's Future Fund invested in Spaceship, a millennial-focused superannuation (retirement savings) provider, as part of a $19.5 million funding round closed in June 2017.
- • The funding round took the form of convertible notes, implying a maximum company valuation of A$70 million at the time of investment.
- • This represents Spaceship's second major capital raise, following a $1.5 million seed round completed in the prior year, signaling growing institutional confidence in the fintech-driven retirement savings sector.
- • Thiel's investment through his venture capital firm Founders Fund continues his pattern of early-stage backing in technology-driven consumer finance platforms, building on his track record with PayPal, Facebook, and SpaceX.
Summary
Peter Thiel, the Silicon Valley billionaire and venture capitalist, has joined a new investor group backing Spaceship, an Australian superannuation provider targeting millennial savers. The investment was announced on June 1, 2017, as part of a $19.5 million capital raise that also included participation from a venture firm backed by Australia's Future Fund, the country's sovereign wealth vehicle.
The funding round employed convertible note instruments, a common structure in early-stage venture investing that allows investors to defer valuation negotiations. According to available market data, the financing implies a maximum company valuation of A$70 million. This represents Spaceship's second substantial capital injection, building on a $1.5 million seed round raised in the prior year.
Thiel's participation underscores institutional interest in technology-enabled disruption of traditional financial services, particularly in the retirement savings sector. As co-founder of PayPal, early investor in Facebook, and partner at Founders Fund—which has backed high-profile ventures including SpaceX and Stripe—Thiel has demonstrated a consistent appetite for backing companies applying technology to transform consumer-facing financial markets.
The involvement of the Future Fund, Australia's A$130 billion+ sovereign wealth fund, signals confidence from an institutional capital allocator in Spaceship's business model and market opportunity within the Australian superannuation industry. This dual backing from both private venture capital (Thiel's Founders Fund) and public-sector institutional capital reflects the growing mainstream acceptance of fintech solutions in traditionally conservative financial sectors.
The timing of this capital raise in mid-2017 positions Spaceship within a broader wave of fintech innovation targeting underserved demographics, particularly younger savers seeking lower-cost, digitally native alternatives to incumbent financial institutions.
The funding round employed convertible note instruments, a common structure in early-stage venture investing that allows investors to defer valuation negotiations. According to available market data, the financing implies a maximum company valuation of A$70 million. This represents Spaceship's second substantial capital injection, building on a $1.5 million seed round raised in the prior year.
Thiel's participation underscores institutional interest in technology-enabled disruption of traditional financial services, particularly in the retirement savings sector. As co-founder of PayPal, early investor in Facebook, and partner at Founders Fund—which has backed high-profile ventures including SpaceX and Stripe—Thiel has demonstrated a consistent appetite for backing companies applying technology to transform consumer-facing financial markets.
The involvement of the Future Fund, Australia's A$130 billion+ sovereign wealth fund, signals confidence from an institutional capital allocator in Spaceship's business model and market opportunity within the Australian superannuation industry. This dual backing from both private venture capital (Thiel's Founders Fund) and public-sector institutional capital reflects the growing mainstream acceptance of fintech solutions in traditionally conservative financial sectors.
The timing of this capital raise in mid-2017 positions Spaceship within a broader wave of fintech innovation targeting underserved demographics, particularly younger savers seeking lower-cost, digitally native alternatives to incumbent financial institutions.
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