U.S. venture capital giant General Catalyst has announced a new $8 billion fund aimed at increasing investments in multi-sector early-stage startups worldwide, particularly in the U.S., Europe, and India. The capital includes approximately $4.5 billion allocated to its “core VC funds,” which cover seed and growth equity funding. An additional $1.5 billion is designated for its “creation strategy,” which focuses on helping proven founders launch new companies. The remaining $2 billion will be used for “separately managed accounts,” typically investment vehicles created for individual institutional investors.
“As a global investment company that seeks to partner with the world’s most ambitious entrepreneurs to drive transformation, resilience, and applied AI, we believe this capital will turbocharge our investment theses across AI, defense and intelligence, climate and energy, industrials, healthcare, and fintech,” wrote General Catalyst CEO and Managing Director Hemant Taneja in a blog post.
Founded in 2000, General Catalyst has invested in some of the biggest U.S. tech startups, including Airbnb, Instacart, Snap, Kayak, Stripe, and HubSpot. The firm has also supported numerous international companies like Deliveroo in Europe. Recently, General Catalyst has pursued global growth by merging with local entities, including La Famiglia in Europe last year and Venture Highway in India. Currently, General Catalyst manages over $30 billion in assets.
Today’s announcement follows TechCrunch’s report that General Catalyst is working on a “continuation” fund worth up to $1 billion, allowing it to hold and invest in portfolio companies beyond typical VC fund timelines. The firm is also preparing for its first investment in Saudi Arabia and has introduced a financial product for late-stage private companies to separately capitalize their customer and marketing expenditures. This latest funding round comes months after Andreessen Horowitz announced a significant $7.2 billion raise.
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In an exclusive interview with TechCrunch, Jeannette zu Fürstenberg, who heads General Catalyst’s European operations, stated that 25% of the $8 billion raised would be allocated to Europe across various strategies. “The core thesis is to focus on talent at the earliest stages. We are a global transformation company with early-stage investment at its core,” she explained. Following the merger with La Famiglia, the company aims to prioritize pre-seed and seed investments, enhancing support for founders through platform capabilities.
Regarding its “creation” strategy, zu Fürstenberg indicated plans to partner with large companies seeking to embed AI into their products. “We are looking to co-develop and co-hatch products together with them. We’ve already done this with Fever Energy, a Scandinavian climate tech company,” she noted. She elaborated on General Catalyst’s approach, emphasizing a strategy of engaging in “roll-ups” by incorporating various sectors and functions, including AI-enabled call center software like Crescendo.
General Catalyst is concentrating on two main themes: applied AI and global resilience. “We believe AI, at its core, is not a disruptive technology. It provides a transformative angle within existing categories,” she said, pointing to sectors like manufacturing and supply chains. She highlighted the importance of re-establishing core verticals, especially in light of destabilizing global events. “Nations cannot afford to be at the mercy of others,” she stated, referencing the global shortage of antibiotics during the pandemic.
To underscore her point, zu Fürstenberg mentioned General Catalyst portfolio company Helsing, an AI defense firm that has formed partnerships with major players like Airbus and Saab. “They’re collaborating with some of the largest European defense primes,” she added. “AI and global resilience are two core themes that are increasingly intersecting.”
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As General Catalyst continues to expand its global footprint, the firm’s commitment to fostering innovation and resilience across sectors is expected to drive significant impact in the startup ecosystem. The focus on applied AI and strategic partnerships will likely position General Catalyst as a key player in addressing emerging challenges and opportunities in technology and beyond. This proactive approach could influence future investment trends, shaping the landscape for early-stage startups in various regions.
