Foundation Capital Raises $600 Million for Flagship Fund
Foundation Capital, known for its early investments in prominent companies like Solana and AI chip manufacturer Cerebras, has successfully raised a substantial $600 million for its eleventh flagship fund. This latest fund is 20% larger than its predecessor, which closed at $500 million approximately three years ago.
The firm’s strategy is centered on early-stage investments, emphasizing the importance of being involved from the very beginning, or as they put it, “being there at day zero.” This approach has led to the remarkable statistic that 80% of Foundation’s investments occur before the companies generate any revenue.
For instance, Foundation Capital made its initial investment in Cerebras in 2016, a time when the AI chip industry was still in its infancy. Today, Cerebras has grown into a substantial enterprise valued at $4.25 billion, with plans for an initial public offering (IPO) slated for an undisclosed date in the future.
In their recent announcement, the company reflected on its long-term vision, stating, “Our first investment in AI was made in 2009, well over a decade before ChatGPT brought artificial intelligence into the mainstream. Furthermore, we have been actively investing in blockchain technology since 2014, remaining undeterred by the challenging periods often referred to as crypto winters.”
