General Catalyst raises $8B to fuel global startups

General Catalyst, a prominent U.S. venture capital firm, has announced a significant fundraising effort, securing $8 billion to enhance its investment in early-stage startups worldwide. The firm plans to allocate approximately $4.5 billion for its core venture capital funds, which target seed and growth equity funding, while dedicating $1.5 billion to its creation strategy aimed at supporting proven entrepreneurs in launching new ventures. Furthermore, $2 billion will be set aside for specialized investment accounts established for select institutional investors. The announcement highlights General Catalyst's ambition to drive innovation across diverse sectors, including AI, climate energy, healthcare, and fintech. CEO Hemant Taneja emphasized the company's global reach and partnerships with ambitious entrepreneurs to foster transformation and resilience. Notably, the firm is looking to leverage AI as a central theme in its investment strategy, focusing on intersections with critical sectors. In pursuit of international growth, General Catalyst has merged with local VC firms, expanding its influence in key markets such as Europe and India. Jeannette zu Fürstenberg spearheads the European arm, actively allocating 25% of the new funds to that region while enhancing pre-seed and seed investment opportunities. The timing of this fundraising coincides with other significant moves in the venture capital landscape, underscoring a competitive environment as firms seek to adapt and thrive amid global challenges and changing market dynamics.