Meta plans minority stake in VC firm NFDG

Mark Zuckerberg’s Meta is proposing to buy a minority stake in venture firm NFDG, founded by Nat Friedman and Daniel Gross, who were recent AI hires at the social media giant, reports the Wall Street Journal.

The deal would let existing investors cash out at full net asset value, and Meta could acquire 49% of the company’s holdings. 

NFDG raised $1.1 billion in 2023 and was planning to raise $1.5 billion this year. It has seen investments appreciate four times in value.

Although Meta won’t gain control or information rights in portfolio companies, the deal marks a bold endorsement of Friedman and Gross, now leading Zuckerberg’s AI initiatives.