Throughout his career, venture capitalist Tim Draper has found huge success investing early in tech companies. Draper is most known for founding Draper Fisher Jurvetson (DFJ) and is a renowned supporter of cryptocurrencies. According to Forbes, Tim Draper has a net worth $1.2 billion.
Early Life
Born on June 11, 1958, in East Chicago, Indiana, Timothy Cook Draper was destined to be involved in the finance industry. His lineage boasts of prominent businessmen and government officials, including his father, William Henry Draper III, founder of the Draper & Johnson Investment Company, and his grandfather, Willian Henry Draper II, the first ambassador to NATO.
Initially, Tim studied Electrical Engineering at Phillips Academy Andover, breaking away from the family tradition. However, his academic path eventually led him to Stanford University, where he co-created the popular campus board game, Stanford – The Game. In 1984, he got his MBA from Harvard Business School, setting the foundation for his career in venture capital.
Business Pursuits
Tim Draper’s career began at Alex. Brown & Sons, an investment banking firm. He left in 1985 and founded Draper Fisher Jurvetson (DFJ), alongside investors John Fisher and Steve Jurvetson.
Along with DFJ, the Indiana native created an early-stage venture capital firm, Draper Associates, and the Draper Venture Network, a global network of experienced entrepreneurs. His latest venture, Draper Goren Holm, a blockchain venture fund, was founded in 2018, reaffirming his belief in the potential of blockchain technology.
Investment Career
With DFJ, Tim Draper invested in companies that introduced disruptive technologies. His first major investment was in Hotmail, one of the first webmail services which was acquired by Microsoft in 1997 for $400 million.
He continued to invest in companies that eventually became industry leaders. This includes Skype, Twitter, Baidu, Tesla, SpaceX, Ring, Coinbase, and Twitch. Notably, he was an early investor in Theranos, Elizabeth Holmes was a childhood friend of Draper’s daughter and grew up in the same neighborhood
Draper’s foray into cryptocurrencies has been equally successful. In 2014, he made headlines by purchasing 29,656 bitcoin for $18.7 million or $632 per coin, in an auction conducted by U.S. Marshals. This was the bitcoin seized from the Silk Road.
Net Worth and Earnings
Draper’s strategic investments have significantly contributed to his billion-dollar fortune. His investment in Skype alone proved to be immensely profitable; DFJ owned 10% of the firm when it was acquired by eBay for $4.1 billion in 2005.
If he still holds all of the 30,000 bitcoin, they would be worth over $780 million today. Despite the sell off, Draper predicts Bitcoin will hit $250,000 sometime during 2023. His crypto portfolio also includes other riskier crypto such as VeChain and Tezos. Currently, Draper’s net worth is valued at $1.2 billion.
Personal Life
Away from the world of investing, Draper is married to Melissa Lee Parker, and they have four children – Jesse, Eleanor, Adam, and Billy. The family resides in Atherton, California, where they maintain a low-key profile while Draper continues to shape the tech industry’s future.
