Foundry Group raises $750 mln for early-stage, growth and partnership investments

The Foundry Group said it raised a $750 million seventh fund to target early-stage, growth and partnership-fund investments with a single fund.

The firm had previously split the strategies into separate funds.

The new fund, Foundry Group Next 2018, represents a small increase in capital to the firm. Its most recent early-stage fund, Foundry Venture Capital 2016, raised $225 million, and its most recent growth and partnership fund, Foundry Group Next, raised $500 million. So together the firm raised $725 million between the two.

Foundry Group said in a blog post its investment strategy remains unchanged and that it doesn’t anticipate adding to its staff. The firm invests in the United States and Canada following a thematic approach.

Foundry now has seven partners, including the original four of Brad Feld, Seth Levine, Jason Mendelson and Ryan McIntyre, and the firm has added in recent years Lindel Eakman, Chris Moody and Jamey Sperans.

Investments are made either in syndication or independently with the goal of obtaining a significant ownership position in a company that can often be greater than 30 percent.

Growth investments will target Series B and C rounds in financings with pre-money valuations between $50 million and $300 million.

The new fund brought in a small number of new LPs.

Action Item: Read more about the fund in the firm’s blog post, available at https://bit.ly/2OCaAvB.