March 24, 2006 Foundation Capital Raises $525M Early Stage Venture Fund By Mark Boslet PALO ALTO, Calif. (Dow Jones)—Foundation Capital, a Silicon Valley venture firm, is expected to announce Friday that it closed a $525 million fund earlier this month. The venture partnership said Fund V will focus largely on early stage technology startups and will begin making investments by mid year. The new fund includes investment from two new limited partners: the Stanford University endowment and Purdue University, said General Partner Paul Holland. Other limited partners that also invested in earlier Foundation funds include Harvard University, Yale University, the University of Chicago, the Hewlett Foundation, Horsley Bridge Partners, Dartmouth College and CSFB Investment Management. The partnership had initially set out to raise between $400 million and $500 million, but found itself oversubscribed, Holland told Dow Jones. It raised the money because the firm's previous $595 million Fund IV should complete its investing by the middle of 2006. Holland said Foundation will follow a similar strategy investing Fund V. About 80% of the firm's investments go to early stage companies, he said. At the same time, about 40% of total dollars go into software companies and 40% into semiconductor, telecommunications and networking firms, he said. The remaining 20% is divided between clean energy investments and consumer companies. -By Mark Boslet, Dow Jones Newswires; 650-496-1366; mark.boslet@dowjones.com © 2006 Dow Jones & Company, Inc.