How Josh Kushner Overcame Family Scandal to Become a Billionaire VC Powerhouse

1. Josh Kushner has built VC firm Thrive Capital into a $5.3 billion powerhouse despite family scandals, overcoming doubts about his past.
2. His success stems from an unusually kind and loyal approach compared to cutthroat VC peers, winning over skeptical founders.
3. Kushner remains intensely protective of family like brother Jared despite political differences, keeping views private.
4. Early wins like Instagram’s $1 billion sale soon after investing gave Kushner credibility.
5. As Thrive’s first downturn looms, its inexperienced team may need more partners with authority to endure.

---

Josh Kushner’s extreme privacy shows how the next generation of billionaire VC titans may spurn the spotlight. Unlike household names like Marc Andreessen or Ben Horowitz who tweet prolifically and speak at every tech event, Kushner painstakingly avoids public attention. He granted Fortune unprecedented access after years of silence precisely because he remains an enigma.

This reclusiveness marks a shift from an era when VC stardom provided immense advantages. The Andreessens of the world built celebrity through constant media exposure and conference headlining, using fame to intimidate founders and lure star hires. But Kushner realized visibility came with costs, like scrutiny of his family’s troubles.

The new paradigm of ultra-private billionaire investors avoids these pitfalls. Without needing to perform for cameras, they can focus purely on dealmaking and nurturing startups with “quiet power.” Their mystique lends them an aura of authority and competence that public gaffes could erode.

As VC competition reaches new heights, expect more ultra-high-net-worth investors like Kushner to conclude public visibility breeds more risk than reward. This “invisible billionaire” approach means the industry’s power players may only be known to an inner circle of founders and limited partners. Outsiders will be left guessing how they operate and what deals they’re pursuing, a level of secrecy once anathema to fame-seeking VC heavyweights. But for a new generation prioritizing family loyalty like Kushner, privacy trumps publicity.

The Under-the-Radar Billionaire: How Josh Kushner Built His VC Empire Outside the Family Shadow

Josh Kushner has scaled his firm Thrive Capital from a $40 million fund in 2011 to a $3.3 billion eighth fund today, despite family scandal threatening his ambitions. His father Charlie served jail time for white collar crimes, while his brother Jared’s affiliation with the Trump administration led many to shun the Kushners.

Yet Josh paved his own path, convincing founders he was more than his last name. The 38-year-old has amassed positions nearing 10% ownership in multiple billion-dollar startups like GitHub, Stripe, and Skims. Earlier this year, he sold a 3.3% Thrive stake to moguls like Disney’s Bob Iger, valuing the firm at $5.3 billion and solidifying his billionaire status.

Kushner’s success stems from his politeness and loyalty, which distinguish him from his father and brother’s more combustible styles. Founders value his reliable support, saying he’s “extremely composed” compared to cutthroat VC peers. Despite political differences with Jared, Josh remains intensely protective of family.

Still, the name has burdened him. Yale once cancelled a meeting due to Charlie’s crimes. “I am not ashamed of my father,” Josh wrote in response, eventually changing Yale’s mind. The Trump affiliation also threatened his firm Oscar Health, but cofounder Mario Schlosser said Josh made his views clear internally and “it never became a problem.”

Kushner has overcome doubts thanks to early wins like Instagram’s $1 billion sale months after he invested. But as Thrive manages its biggest-ever $3.3 billion fund, its small team lacks experience navigating downturns. Kushner may need to empower more partners to build something enduring. He’s also very private, doing few public interviews despite competitors becoming celebrities.

Regardless, founders value his loyalty in an often cutthroat industry. “It’s a lot more difficult to be kind than it is to be a hard-ass,” said GitHub’s Chris Wanstrath. Kushner has realized in VC, where deals depend on referrals, it pays to take the long view. His kindness leaves room to admit rare mistakes, strengthening bonds for decades.

---

Two products launched right now:  

AI Agent: https://orbitmoonalpha.com/shop/ai-tool-agent/

AI Drawsth: https://orbitmoonalpha.com/shop/ai-tool-drawsth/

Share on Twitter