Foundation Capital Raises $600m Fund in 30 Years of Operation
Foundation Capital has come a long way since it was forced to scale down its fund size from $750 million in 2008 to $282 million (its sixth main fund) in 2013. On Tuesday, the 30-year-old firm announced that it raised a $600 million eleventh flagship fund, which is 20% larger than the predecessor $500 million fund it closed about three years ago. Foundation credits its revival with sticking to its knitting: seed stage investing.
- The firm's ability to raise a larger fund than its predecessor in this market suggests that its early-stage strategy has been effective in identifying and backing promising startups, which could have long-term implications for the venture capital industry.
- How will Foundation Capital's focus on "zero-billion" markets impact its investment thesis and portfolio composition in the years to come, and what potential risks or challenges may arise from this approach?