14 February 2024

Foundry Group to Cease Operations and Halt Fundraising

With nearly $3.5 billion in assets, the 18-year-old venture firm Foundry Group has announced it will not raise more funds and is preparing to shut down.

Foundry Group is shutting down and won't raise another fund

Foundry Group, an 18-year-old venture firm with nearly $3.5 billion in assets under management, has announced it will not be raising more funds, marking its last, Foundry 2022, as its final one. Despite backing major companies like Fitbit and Zynga, Foundry's co-founder Seth Levine points to a founding decision to avoid building a legacy firm and to re-evaluate each potential new fund.

What's next for Foundry Group

Even with the closure, Foundry has a substantial amount of its last fund to invest and plans to lead Series A and B financings. The firm's strategy poses risks for its portfolio companies seeking follow-on funding, but Levine assures a continuous support for existing investments, expecting all funds to be deployed by 2026.

Impacts on the Venture Capital Industry

Foundry's closure follows a recent trend of unexpected venture firm shutdowns, raising questions about the stability and strategies of venture capital firms in the current economic landscape.

Foundry Group, venture firm, shutdown, fundraising, assets under management, venture capital

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