Foundation Capital, a Palo Alto-based early-stage venture capital business with offices in San Francisco and Palo Alto, has been active for 27 years in various forms. It has been large, tiny, flourishing, and teetering.
It is back in growth mode in 2022. The business is reporting that it has secured $500 million for its tenth flagship fund three years after closing its ninth fund with $350 million in capital commitments from three general partners. After two of its investors were upgraded to general partners and former founder Angus Davis was hired, it now has six general partners. It also has several projects in its portfolio that will excite its investors.
The fast-growing NFT marketplace OpenSea, the buzzy public blockchain platform Solana (Foundation was its first institutional investor), and Cohesity, a data management company that filed for an IPO last month, are allegedly targeting a valuation of $5 billion to $10 billion, are among them. (For comparison, Cohesity was valued at $3.7 billion by its private investors in March.)
Foundation, like other firms, is investing more money not only in startups but also in developing venture firms that provide access to new networks and ideas. According to Steve Vassallo, another veteran general partner at the business, the firm has invested around $15 million in at least 53 different venture outfits that serve as “beacons” for Foundation acquisitions in recent years.