Foundamental Launches Third Fund, Targets Indian Market
Berlin and Mumbai-based venture capital firm Foundamental has unveiled its third fund, focusing on investments in construction technology and related sectors, with a strong emphasis on the Indian market. The firm, led by managing partners Shubhankar Bhattacharya and Patric Hellermann, aims to finalize the fund by the end of 2025. This initiative continues Foundamental’s strategy of supporting early-stage companies across various regions, including Asia-Pacific, Europe, the Americas, and MENA.
Investment Strategy and Market Focus
Foundamental’s new fund will maintain its commitment to investing in early-stage companies within the construction, infrastructure, and heavy industry supply chains. The investment sizes will range from $500,000 to $5 million, targeting pre-seed to Series A funding rounds. Bhattacharya emphasized the firm’s global perspective, stating that their experience across continents enables them to identify successful founder traits and sustainable business models in the project economy. This global approach provides Foundamental with a unique advantage when partnering with Indian entrepreneurs.
As India embarks on a significant transformation in its infrastructure landscape, the demand for efficiency, transparency, and technological innovation is at an all-time high. Bhattacharya noted that Fund III is designed to deepen Foundamental’s commitment to India while continuing to invest in global opportunities. The firm has already established a notable presence in India, with investments in companies like Infra.Market and Infraprime Logistics, both of which are preparing for public listings.
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Performance and Future Prospects
Founded in 2019, Foundamental has successfully invested in over 70 companies across 22 countries. The firm’s previous funds, Fund I and Fund II, have been recognized as some of the top-performing venture funds globally. Bhattacharya highlighted that all investors from these earlier funds have returned as limited partners in Fund III, with 40% increasing their commitments and 60% more than doubling their allocations. This strong investor interest was achieved in record time, with commitments secured in fewer than 20 meetings, showcasing the demand for investments in the project economy.
Foundamental’s investment strategy spans seven verticals, including construction and building materials, infrastructure, CAD and engineering, renovation, supply chain and logistics for heavy industry, lot-size-one manufacturing, and aerospace, defense, and shipbuilding. With a presence in 22 countries and over 75 markets, the firm is well-positioned to capitalize on emerging opportunities in the construction technology sector.
