Foundation Capital scores big with $600M fund for Solana and Cerebras!

Foundation Capital has had quite the journey, starting from a forced fund size reduction in 2008 to now raising a whopping $600 million for their eleventh flagship fund. This is a huge jump from their previous $500 million fund just three years ago. The key to their success? Sticking to what they know best: seed-stage investing.

In a world where most firms diversify across stages, geographies, and strategies, Foundation has stayed laser-focused on the early stage. General partner Steve Vassallo credits their success to this approach, proudly stating that they are the first institutional investor in over 70% of their portfolio companies.

Looking for opportunities in “zero billion” markets within enterprise, AI, fintech, and crypto, Foundation has a knack for spotting trends before they become mainstream. Take Cerebras, for example, a company they invested in when the AI chip market was virtually nonexistent. Fast forward to today, and Cerebras is valued at a staggering $4.25 billion.

Foundation’s track record of creating new markets has led to some impressive outcomes, with their investments often becoming category leaders. Their ability to generate high cash distributions has allowed them to raise larger funds and continue their winning streak.

Recent exits, like the sale of EvolutionIQ and the acquisition of Venafi, have propelled Foundation’s success, showcasing their keen eye for promising ventures. With the early-stage landscape evolving, Foundation acknowledges the need for a larger fund to maintain their ownership stake in companies they invest in.

Despite the changes in their team, with investor Charles Moldow retiring, Foundation remains steadfast in their commitment to early-stage investments. With their proven track record and knack for spotting opportunities before they explode, Foundation Capital is poised for even greater success in the future.