How Did Tim Draper Make His Money?

How did Tim Draper, the American venture capitalist investor, make all of his money? Anyone who is familiar with the name Tim Draper is wondering that, but it’s mostly from just being a smart investor and businessman. He’s also very well known in the cryptocurrency world, where he also has made a ton of cash.



So, how did Tim Draper Make his money, and continues to do so? We’ll break it down below.

Investments

First and foremost, Tim Draper is well known for being a venture capitalist investor. In 1985, started an investment firm that would later become known as Draper Fisher Jurvetson (DFJ). The firm itself focuses on “early- and growth-stage investments in enterprise, consumer and disruptive technologies.”

Right now, DFJ is one of the six largest investment firms within the space sector, where DFJ has had over $10 billion in private capital invested since 2005. They currently report total assets of $5 billion.

Draper has since stepped down from DFJ, but still does investing out of his personal fund, Draper Associates. That said, most of Draper’s earnings come from these investments as well as his early time at DFJ.

Businesses

Draper has a variety of other ventures that he has invested into as well. Draper started Draper University, which is a for-profit school that teaches entrepreneurship in Silicon Valley. That might sound odd, but Draper University has an unconventional method of teaching business and entrepreneurship through real-world scenarios. It isn’t your traditional classroom setup with lectures and all of that.

That said, Draper University is a huge success, and boasts over 500 alumni from all over the world. The school has had huge success in other areas, having help launched over 280 startups and well over $51 million in funding from other venture investors.

Bitcoin

Draper is also well known for his activism in Bitcoin. He made the news after he purchased 30,000 bitcoins that were seized by US Marshalls from a raid on the Silk Road marketplace. That Bitcoin, at the time, was estimated to be worth $19 million. Reports right now estimates that Draper made around $89 million off of his Bitcoin investment.

Tim Draper regularly makes Bitcoin perditions, and all have come to fruition thus far. Draper, however, predicts that Bitcoin will reach $250,000 within four years.

Books

Draper also makes money off of book sales. Being an expert in venture capitalism, startups, and all things finance, he has written multiple books for entrepreneurs and startups. While we don’t have specifics on book sales, it’s still a revenue for stream, even if a small one.

Verdict

As you can see, like any venture capitalist, Tim Draper has multiple streams of revenue that brings cash into the bank. His investments account for a large portion of his income, as any good venture capitalist would make sure of.  However, Bitcoin has also proved to be a massive revenue stream, as well as Draper University and the businesses that they have helped created.