Foundry Group Raises $225M Third Fund

The Foundry Group did what you might call a “cut and paste.”

The firm closed its third fund, which at $225 million is exactly the same size as its second and first funds. To announce the event, it used exactly the same blog post it did for its previous fund, just changed the date. Hence the ‘cut and paste.’

Foundry Venture Capital 2012 will, not surprisingly, follow the same strategy the firm used with its earlier funds. It will invest in U.S.-based seed and early stage companies in software and IT. It will continue what it calls “thematic investing,” which the firm describes on its Web site as: “Rather than looking for short-term hits, we focus on themes that have the ability to drive a cycle of innovation (and hence provide multiple investment opportunities) over a period of five to ten years or more. We invest across North America in a multitude of sectors tied to our thematic approach.”

Foundry, which invested rather famously in Zynga and more recently in Modular Robotics and FullContact, has had early success with its investments. Its 2007 fund had an IRR of 66.9% as of November 2011, according to a portfolio report from the University of Texas Management Company, an LP. Its 2010 fund, now just two years old, had an IRR of -17.59% in the same report.

Present Foundry Group investment themes include ad tech, human computer interaction and distribution. A complete list can be found here.

The firm reportedly will not begin investing from the new fund until later this year or early next.

Photo courtesy of Shutterstock.

DON'T MISS IT! After two successful conferences on the East Coast, we’re bringing our LPs and fund managers to San Francisco for the first annual Emerging Manager Connect West on May 11. Don’t miss out on insightful panels and great networking! CLICK HERE for details.

Sign up to our Newsletter

Receive updates from our PE HUB Wire and Top Stories of the Week newsletters:

We will not send you spam, and we don't share your email address with 3rd parties.