March 24, 2006 Foundation Capital Fund Rakes In Cash MENLO PARK, Calif. -- The heavy fund raising in the venture-capital industry is continuing, with early-stage investment firm Foundation Capital closing a new $525 million investment fund. The firm, which specializes in early-stage investments, says it will focus on companies developing networking and telecommunications equipment, semiconductors, software as an Internet service, energy and consumer technology. Foundation's announcement comes as other venture firms have launched big new funds this year: Earlier this month, Polaris Venture Partners of Waltham, Mass., launched a $1 billion fund. And last month, Kleiner Perkins Caufield & Byers, of Menlo Park, announced a $600 million investment fund, some of which will be targeted at "clean technology" investments. Last year, U.S. venture-capital firms raised $25.2 billion from investors, the most since 2001, and many firms are struggling to put all that cash to work. C5 (Copyright © 2006, Dow Jones & Company, Inc.)