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Foundry Group , an 18 - year - old speculation firm with closely $ 3.5 billion in asset under management , has quietly make up one’s mind to exclude down and not raise any more funds . The move was unexpected considering that the firm announced a $ 500 million fund last class .
Boulder , Colorado - establish Foundry first announce that its current fund would be its last on January 19 . The venture firm had been investing since 2007 , harmonise to Crunchbase , and had announced the $ 500 million fund , Foundry 2022 — its eighth — in May of 2023 .
Over the years , Foundry has invested in more than 200 company and nearly 50 venture firms , allot to Colorado - father and mate Seth Levine . It had backed the likes of Fitbit , Zynga and AvidXchange , among others .
The firm maintains the decision was the design all along . When TechCrunch arrive at out to Levine , he declined to straightaway comment on the firm ’s determination to shutter , and rather pointed to blogs he ’d written .
In oneblog , he acknowledged that the firm ’s decision to completely exclude down was an strange one .
He wrote : “ While VC firms rarely make decisions like this , it ’s on the dot what we planned to do when we started Foundry in 2006 . From our founding , we intentionally decided not to build a legacy or generational business firm — one meant to populate beyond the incumbency of the found partners . Instead , we mean to focus on the work of investing , re - evaluate each likely new investment trust as our fundraising cadency required … We’ve had several moments over the last decennary where we retrieve the monetary fund we were raising might be our last . Each of those multiplication , after reflection and word , we decided to raise another stock . But not this time . Foundry 2022 will be our last fund . ”
In apersonal blog , Levine noted that he began partake publically in January of 2023 his programme for the 2022 Foundry fund to be his “ last as a better half at Foundry . ”
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He add up : “ I did n’t make a big announcement about it – just started mentioning it in situations where it seemed innate to do so … At the prison term , I was n’t sure if we would make the same decision for Foundry as a whole , but since I knew my intent , I thought it would be appropriate to be unresolved about it . After more discussions internally and careful consideration , we decide that the 2022 store would be Foundry ’s final fund as well . ”
Levine continued : “ Choosing not to be a legacy firm is one way we ’ve challenged norm in the speculation industry and just one of many things we take pride in as we think over back upon our metre build Foundry . We ’ve make love experimenting with the venture model , whether that was building the first VC AngelList mob , investing in market place across the country where venture capital was less rife , being among the first GPs to institutionalize a fund investment practice , and essay to bring transparency , openness ( and hopefully some humor ) to the speculation industry . ”
What’s next
Foundry still has 33 % to 40 % provide out of that investment firm to invest , Levine tell theDenver Business Journal . In his blog , Levine suppose specificallythe house plans to “ continue to guide Series A and B financings ” out of the fund .
The move stir questions for its portfolio fellowship . Foundry say it will continue to invest out of its New fund , but for founders , accept capital from a firm that is wrap down is a endangerment and could make securing pursue - on financial backing that much intemperately .
Meanwhile , Levine keep to theDenver Business Journalthat he expects all the monetary resource to be deployed byaround 2026 and that the firm will then “ still act upon with business organisation in which it has investments . ”
In his personalblog , Levine wrote : “ We raise our last Foundry investment trust at a causeless clock time , just as the markets cool down off ( it ’s a great sentence to be investing ) , and we have another two eld or so of new investments to look onward to . Not to mention a decade or longer of oeuvre with the portfolio after that . ”
The investor also differentiate the Denver Business Journal that he would “ be with Foundry until its body of work is completely done , ” add that co - founding father Brad Feld and partner Chris Moody “ plan to do the same . ” He could not say what the other partners would “ get up to in the next few years . ”
In her ownblog postFoundry partner Jaclyn Hester wrote that she was “ focused on supporting our portfolio and lead young early - stage rounds as we deploy the difference of the 2022 fund over the next few eld . ”
Foundry is not the only speculation firm to late circumstantially announce it was weave down . In December , Boston - free-base OpenView abruptlyannounced it would stop seat in new companiesless than a yr afterraising $ 570 millionfor its seventh fund .
Update : This article was updated post - issue to ruminate there no divergence at the firm as a upshot of the conclusion – voluntary or otherwise , according to Levine . It also was updated to include further item behind the firm ’s determination not to parent any more monetary fund .
