The Berlin-based venture capital firm aims to close Fund III—anchored in the broader project economy of construction and infrastructure—by the end of calendar 2025.
Berlin-based venture capital firm Foundamental has announced the launch of its third fund, reinforcing its commitment to India and the Asia-Pacific region while expanding its global footprint across construction, infrastructure, and heavy-industry supply chains. The firm, led by Managing Partners Shubhankar Bhattacharya and Patric Hellermann, aims to close Fund III by the end of calendar 2025.
Positioned within the broader ‘project economy,’ construction and infrastructure represent a projected $12 trillion opportunity over the next decade. Despite their scale, these sectors remain among the least digitalised globally, creating space for technology-led disruption and new category leaders. Foundamental’s investment thesis centres on this digitalisation gap, which it views as a catalyst for long-term transformation across talent, supply chains, and digital infrastructure.
Since its inception in 2019, Foundamental has built a portfolio spanning 22 countries and over 75 markets. Its early conviction in construction-tech—launched with a $60 million fund when sector funding hovered around $4.5 billion—has been validated by cumulative global investment crossing $37 billion by 2024.
“Backing winners and market leaders across continents has helped us compound our knowledge, enabling us to spot the founder traits that win and the business models that endure in the project economy,” said Bhattacharya. “Being a global investor gives us a distinctive advantage in partnering with Indian founders.”
Fous on India
India has emerged as a cornerstone market for Foundamental. Portfolio companies such as Infra.Market and Infraprime Logistics are preparing for public listings, reflecting the sector’s growing maturity. Drawing on experience across the Asia-Pacific, Europe, and the Americas, Foundamental supports Indian founders with cross-border customer pathways, long-horizon capital, and vertical-specific insight, facilitating learning transfer and internationalisation.
“As India undergoes a once-in-a-century transformation in infrastructure, the need for efficiency, transparency, and technology has never been greater. Fund III allows us to deepen our commitment to India while continuing to invest globally,” Bhattacharya added.
Beyond India, Foundamental has backed companies such as Enter (Germany), Snaptrude (US), Tazapay (Singapore), Monumental (Netherlands), and Speckle (UK), each addressing critical challenges in their respective markets. The firm invests across seven core 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. Typical investment sizes range from $500,000 to $5 million, targeting pre-seed to Series A rounds.
Fund III builds on the momentum of its predecessors—Fund I (2019) and Fund II (2022)—which the firm says rank in the top decile globally among their cohorts. Notably, all investors from the earlier funds have returned for Fund III, with 40 per cent doubling their commitments and 60 per cent increasing their allocations beyond that. These commitments were secured entirely through inbound interest, without traditional fundraising roadshows, and concluded in fewer than 20 meetings.