Foundation Capital closes $750m fund

The Silicon Valley venture firm will allocate one-third of the new fund to cleantech.

Foundation Capital, a Silicon Valley-based venture firm, has closed its sixth fund on $750 million (€478 million). Approximately $250 million will be allocated to investing in cleantech.

Foundation began investing in cleantech in 2003, making investments in companies including eco-friendly materials firm Serious Materials and clean food and water solutions company Purfresh. The firm's investment in demand response and energy management company EnerNOC resulted in one of the cleantech industry's first initial public offerings in May 2007 which raised $97.5 million.

Bill Elmore

“The cleantech industry is thriving with experienced technology executives driving new urgency into the market,” said Foundation general partner Paul Holland in a statement.

The firm focusses on five sectors: enterprise software and on-demand services; networking, storage and telecommunications; semiconductor and electronic design automation; consumer; and cleantech.

Foundation’s previous fund closed on $525 million in May 2006. That fund planned to allocate less than 20 percent of assets in cleantech, general partner Warren Weiss told PEO in 2006. The firm’s funds currently total more than $2.4 billion in assets.

The most recently announced investment by Foundation was in January 2008. The firm participated in a $12 million series B funding round for hardware and software company Pano Logic.

Foundation was founded in 1995 by Kathryn Gould and Bill Elmore. Both were previously GPs at California venture firms: Gould at Merrill, Pickard, Anderson & Eyre and Elmore at Inman & Bowman.