General Catalyst has raised $8 billion in new funds. The venture capital firm plans to use the money to invest in startups around the world. It will focus on early-stage companies in the U.S., Europe, and India.
The $8 billion is split into different categories. About $4.5 billion will go into General Catalyst’s main VC funds. These funds invest in startups at the seed stage and provide growth equity funding.
Another $1.5 billion is set aside for helping experienced founders start new companies. The remaining $2 billion is for special investment vehicles created for single institutional investors. General Catalyst CEO Hemant Taneja said the capital will “turbocharge” the firm’s investments.
The firm is interested in AI, defense, climate, healthcare, and fintech startups. Founded in 2000, General Catalyst has backed major U.S. startups like Airbnb, Instacart, Snap, and Stripe. It has also invested in international companies like Deliveroo in Europe.
General Catalyst boosts startup investments
Recently, General Catalyst has been expanding globally by merging with local VC firms. The firm is also working on a $1 billion fund to continue investing in its existing portfolio companies.
This allows it to support startups beyond the typical VC fund timeline. Jeannette zu Fürstenberg, head of General Catalyst’s European business, said 25% of the new funds will go to Europe. The firm plans to focus on pre-seed and seed stage startups there.
It also wants to partner with large companies looking to use AI. Two key themes for General Catalyst are applied AI and global resilience. Taneja believes AI can transform existing industries rather than disrupt them.
The firm sees opportunities to apply AI in manufacturing and supply chains. Global resilience is about helping nations become less dependent on others, especially after the pandemic and other crises. With this massive funding round, General Catalyst aims to drive innovation and resilience in startups worldwide.
The firm’s investments and partnerships will be important to watch in the coming years.
