Construction technology-focused fund moves forward with its third project, intensifies attention towards India
Foundamental, a venture capital firm with managing partners Shubhankar Bhattacharya and Patric Hellermann, based in Berlin and Mumbai, has announced the launch of its third fund. The new fund aims to invest in construction technology and related project economy sectors.
Foundamental manages sector-specific investments across seven verticals: construction and building materials, infrastructure, CAD and engineering, renovation, supply chain and logistics for heavy industry, lot-size-one manufacturing, and aerospace, defence, and shipbuilding. With this new fund, the firm aims to deepen its commitment to India while continuing to invest globally.
The firm's India portfolio includes Infra.Market and Infraprime Logistics, both preparing for public listings. Foundamental has invested in over 70 companies across 22 countries since its founding in 2019.
The commitments for Fund III were raised in record time, entirely from inbound demand and without the need for traditional fundraising roadshows; in fewer than 20 meetings. All investors from Fund I and Fund II have returned as LPs in Fund III, with 40% doubling their commitments and 60% more than doubling their allocations.
The new vehicle builds on Fund I (2019) and Fund II (2022), which are among the better-performing venture funds globally in their cohorts. The final close of Fund III is aimed to be by the end of calendar 2025.
Investment sizes for Fund III will range between $500,000 and $5 million (approximately Rs 4.3 crore to Rs 43 crore). The global investment groups that belong to the LPs of Foundamental's Fund III include all investors from Fund I and Fund II, with 40% of them doubling their commitments and 60% increasing theirs significantly.
Foundamental's strategy is to back early-stage companies in construction, infrastructure, and heavy industry supply chains across Asia-Pacific, Europe, the Americas, and MENA. The firm's focus on construction technology and related sectors is expected to drive innovation and efficiency in these industries, potentially leading to significant growth opportunities.
With the launch of Fund III, Foundamental continues to demonstrate its commitment to supporting early-stage companies in the construction and related sectors, positioning itself as a key player in the global venture capital landscape.
