Foundry Group closes fourth $225m fund in six years, reveals new strategy


fire flame burn heat energyUS private equity firm Foundry Group has closed its fourth $225m fund in six years after a rapid fundraise for a fund with a new investment focus.

Foundry Group Select will invest solely in the firm’s existing portfolio companies which have achieved “significant success” according to a statement on its website.

It said the new vehicle will be tapped for up to $25m of capital for each deal, which will come during the companies’ late-stage growth rounds.

Foundry said it had previously been limited by the amount they could invest in later-stage rounds due to its early-stage strategy.

The firm sealed a hat-trick of fundraises in September last year by closing its latest vehicle on $225m.

LP commitments equalled those pledged to its 2007 and 2010 vehicles, which focused on seed and early-stage investments in software and IT.

The fundraising situation was so similar Foundry pointed out it had used the same blog post to announce the news, adding it would continue its policy of thematic investing.

Examples of its current investment themes include human-computer interaction, email and digital life.

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