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Foundry Group Announces Closure, Ending Future Fundraising Efforts

Foundry Group Announces Closure: A Shift in Venture Capital Dynamics

In a surprising turn of events, Foundry Group, an esteemed venture firm with an impressive track record spanning 18 years and managing nearly $3.5 billion in assets, has made the unexpected decision to cease its fundraising activities. This decision comes as a shock, especially considering the firm’s announcement of a $500 million fund just last year.

The Decision to Shut Down

Based in Boulder, Colorado, Foundry Group made its announcement on January 19, revealing that its current fund would be its final endeavor in the realm of fundraising. Despite having a history of successful investments since 2007, including backing renowned companies like Fitbit, Zynga, and AvidXchange, the firm has opted to conclude its fundraising journey.

Co-founder and partner Seth Levine, when approached for comment, refrained from elaborating on the reasons behind the firm’s closure, instead directing attention to previous blog posts.

In one such blog post, Levine acknowledged the unconventional nature of Foundry’s decision, stating, “While VC firms rarely make decisions like this, itโ€™s precisely what we planned to do when we started Foundry in 2006.”

What Lies Ahead

Despite the decision to halt fundraising activities, Foundry still has a significant portion of its latest fund, Foundry 2022, remaining for investment purposes. Levine affirmed that the firm intends to maintain its focus on leading Series A and B financings using the remaining capital.

However, this decision inevitably raises questions for the portfolio companies associated with Foundry. While the firm assures that it will continue to invest from its existing fund, founders may perceive accepting capital from a winding-down firm as a risk, potentially complicating future fundraising efforts.

Continued Commitment

Levine expressed confidence that all funds will be deployed by approximately 2026, reaffirming the firm’s commitment to supporting its invested businesses even beyond the investment phase.

In her own blog post, Foundry partner Jaclyn Hester emphasized her dedication to supporting the firm’s portfolio and spearheading new early-stage rounds as they continue to deploy the remainder of the 2022 fund over the coming years.

Industry Trends

Foundry’s decision to shutter its fundraising activities isn’t an isolated incident in the venture capital landscape. In December, Boston-based OpenView similarly announced its cessation of investments in new companies shortly after raising $570 million for its seventh fund.


As Foundry Group navigates this significant transition, it stands as a testament to the evolving dynamics within the venture capital industry. Despite the closure of its fundraising efforts, the firm remains steadfast in its commitment to supporting its portfolio and fostering innovation in the entrepreneurial ecosystem.


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