Foundation Capital was established in 1994 to provide equity capital for Western Australia's small and medium sized enterprises.

Initially, Foundation Capital was established in response to the opportunities resulting from the shortage of development or venture capital available to Western Australian companies in the early 1990s, the difficulties experienced by funds located in the eastern states investing in Western Australia, and the consequent loss of Western Australian technology through acquisition by overseas interests.

Today, Foundation Capital provides more than just venture capital. It seeks investment opportunities where it partners existing management by providing strategic and management support.