Foundry Group is closing its doors and will no longer raise funds

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Foundry Group, an 18-year-old venture capital firm with nearly $3.5 billion in assets under management, has quietly decided to close its doors and no longer raise funds. The move was unexpected given the company announced a $500 million fund last year.

Foundry, based in Boulder, Colorado, first announced that its current fund would be last on January 19. The venture capital firm had been investing since 2007, according to Crunchbase, and announced the $500 million fund, Foundry 2022 – his eighth – in May 2023.

Over the years, Foundry hashas invested in more than 200 companies and nearly 50 venture capital firms, according to co-founder and partner Seth Levine. He has supported Fitbit, Zynga and AvidXchange, among others.

When TechCrunch contacted Levine, he declined to comment on the company’s decision to close its doors and instead pointed to blogs he had written.

In Bloghe acknowledged that the company’s decision to close its doors completely was unusual.

He wrote: “Although venture capital firms rarely make such decisions, that is precisely what we set out to do when we started Foundry in 2006. From our inception, we intentionally decided not to build a legacy or generational business – a business intended to live beyond the mandate. founding partners. Instead, we intended to focus on the investment work, re-evaluating each potential new fund based on the cadence of our fundraising…We’ve had several moments over the past decade where we thought the fund we were collecting might be our last. On each of these occasions, after reflection and discussion, we decided to raise another fund. But not this time. Foundry 2022 will be our last fund.

And after

Foundry still has 33% to 40% of that fund to invest, Levine told The Denver Business Journal. In his blog, Levine specifically stated the company plans to “continue to lead Series A and B financings” out of the fund.

The move raises questions for its portfolio companies. Foundry says it will continue to invest from its new fund, but for founders, accepting capital from a company in liquidation is a risk and could make securing follow-on funding even more difficult.

Meanwhile, Levine maintained the Denver Business Journal that he expects all funds to be deployed by around 2026 and that the company “will then always work with companies in which it has invested”.

In his staff BlogLevine wrote: “We raised our latest Foundry fund at a fortuitous time, just as the markets were calming down (it’s a great time to invest), and we still have about two years of new investments to look forward to. Not to mention a decade or more of working with the portfolio afterward.

The investor also told the Denver Business Journal that he would “stay with Foundry until its work is completely completed,” adding that co-founder Brad Feld and partner Chris Moody “plan to do the same.” He couldn’t say what the other partners would “do in the coming years.”

In his own blog post Foundry partner Jaclyn Hester wrote that she was “fWe have been focused on supporting our portfolio and leading new early-stage funding rounds as we deploy the remainder of the 2022 fund over the coming years.

Foundry isn’t the only venture capital firm to unexpectedly shut down recently. In December, Boston-based OpenView abruptly announced that it would stop investing in new companies less than a year later raise $570 million for its seventh fund.

Update: This article was updated after publication to reflect no departures from the company as a result of the decision – voluntary or not, according to Levine.

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