Andrew McCormack may not be a household name like some of his elite business associates, but this behind-the-scenes technologist-turned-investor has quietly built a formidable career spanning the upper echelons of Silicon Valley. Develop an informed perspective on McCormack, his ventures, and his over $11 million net worth by continuing.
Getting to Know Andrew McCormack
Let‘s start at the beginning – Andrew McCormack graduated from the University of Pennsylvania in 1998 equipped with a BA in Political Science. This Ivy League pedigreed foundation primed him for future roles analyzing complex business dynamics and forging influential connections.
In 2001, the trajectory of McCormack‘s career took a seminal turn when he was hired at PayPal – then an emergent payments startup led by Peter Thiel. As we unravel McCormack‘s biography, it becomes evident that crossing paths with Thiel in PayPal‘s early days impacted the landscape of opportunities that followed.
While at PayPal, McCormack worked closely with the leadership team, including Thiel, to orchestrate the company‘s 2002 Initial Public Offering (IPO). The IPO set the stage for PayPal‘s subsequent acquisition by eBay later that year for a staggering $1.5 billion. Let‘s investigate key junctures of his professional ascent after cashing in on PayPal‘s sale.
| Year | Company | Role |
|---|---|---|
| 2002 | Clarium Capital Management | Operations (for 6 months) |
| 2003 | Sprezzatura Restaurant Group | Co-Founder & Operator (for 5 years) |
| 2008 | Thiel Capital | Principal (for 5 years) |
| 2010 | Valar Ventures | Founding Partner (present) |
| 2020 | Bank of International Settlements | Centre Head of Innovation |
The Winding Road from Restaurants Back to Tech
With the launch of Clarim Capital in mind, it’s helpful to first revisit a pivotal diversion McCormack took into the hospitality industry between 2003-2008.
An ambitious entrepreneur, McCormack co-founded sprezzatura restaurant group without any formal background in restaurants. His daring paid off as the group successfully opened two San Francisco hot spots – Frisson and Laiola. Defying the odds, both concept restaurants built up devoted neighborhood regulars and turned profits within a crowded Bay Area dining market.
“The average restaurant startup only has a 20% chance of surviving past its first year according to Investopedia research.”
After half a decade expanding the Sprezzatura Restaurant empire, McCormack cashed out by selling the group in 2008. His timing aligned with the financial crisis that caused widespread restaurant closures. This exit exemplified McCormack’s business acumen to strategically enter and depart industries.
Rejoining Thiel to Become a Titan of Tech Investing
The lure of technology’s explosive growth summoned McCormack back from his dalliance with restaurants in 2008. He reconnected with Peter Thiel to take over as Principal of Thiel Capital where he stewarded operations for 5 years. McCormack also engaged in corporate development for tech giants like Yahoo! and eCount during this period from 2008-2013.
In 2010, McCormack branched out to co-found Valar Ventures – an investment firm focused on high-growth technology companies – alongside partners Reuben Kobulik and James Fitzgerald.
True to McCormack’s discerning eye for promising startups, Valar built an impressive portfolio of investments including:
- Wise (international money transfers)
- N26 (mobile banking)
- Stash (retail investing platform)
- Xero (small business accounting software)
A decade later, McCormack continues directing Valar’s deals as a Founding Partner while the fund assets under management have swelled to over $380 million.
McCormack’s midi-chlorian level in the tech investing arena continues rising with his 2020 appointment to lead the Bank of International Settlements’ Singapore Innovation Hub.
Valar Ventures Performance Stats:
- Investments: 50+
- Exits: 10+ (IPOs and acquisitions)
- Sample Return Multiple: 31x (Blockchain.com)The PayPal Mafia’s Most Loyal Associate
McCormack’s original stint with PayPal birthed a lifelong working relationship and friendship with Peter Thiel. Their bond spawned successive joint ventures like Clarium Capital, Thiel Capital, and Valar Ventures over 20 years.
In tech lore, the so-called PayPal Mafia refers to PayPal’s early leaders and employees who later became Silicon Valley royalty as startup founders, investors, and advisors. We’re talking household names like Elon Musk, Reid Hoffman, and Keith Rabois.
As Thiel’s loyal right-hand man, McCormack earned his prestige in this circle and its unparalleled access to the next big things. His place in Peter Thiel‘s inner orbit also endowed the nickname Peterverse referencing tech execs like McCormack with enduring orbits around Thiel.
For an insider like McCormack, membership in the PayPal Mafia transfers rare opportunities to pick winners during their earliest stages. How early? Imagine getting to invest in SpaceX or LinkedIn as an angel investor.
What is Andrew McCormack‘s Net Worth?
McCormack’s current net worth estimate hovers above $11 million marking him securely as a wealthy technology venture capitalist and investor.
He accumulated his wealth from equity in PayPal’s sale to eBay, the Sprezzatura Restaurant Group acquisition, compensation and carried interest from firms he helped launch like Valar Ventures, plus appreciation of his investment portfolio.
With the next technology revolution afoot – likely involving Web 3.0, cryptocurrency, space infrastructure, or climate tech – we can expect McCormack and Valar Ventures to remain at the front lines spotting emerging titans. Wherever the Peterverse shifts its attention next, history suggests McCormack won’t be far behind Thiel chasing the next big score through their shared passion for high-technology pursuits.
