US-based General Catalyst closes new $8B fund

Global investment company General Catalyst has raised approximately $8 billion in new capital.

According to the venture capital (VC) firm, it will allot $4.5 billion of the fresh capital raised for its core VC funds focused on seed and growth equity, $1.5 billion for its creation strategy through which the firm forms new companies, and $2 billion towards separately managed accounts.

The fresh capital is expected to “turbocharge our investment theses across AI, defence and intelligence, climate and energy, industrials, healthcare, and fintech,” CEO and Managing Partner Hemant Taneja said in a statement.

The early-stage venture fund has been taking steps to diversify its investments. In June, it merged with Indian VC firm Venture Highway to help bolster its investments in India and partnered with European early-stage fund La Famiglia in 2023.

Additionally, General Catalyst has also taken an interest in the healthcare sector, a sharp turn from its previous investments in high-profile companies like Airbnb and fintech startup Stripe.

In January, the firm, through its new business Health Assurance Transformation Corporatio (HATCo), acquired a US-based nonprofit integrated health system, Summa Health.

Mirroring this strategy, the firm also made a $10 million investment in the Indian senior living platform Primus Life. YourStory had exclusively reported on this development.

“For years, I’ve stated that the traditional VC model does not best position founders to transform industries,” Taneja said in a statement.

The firm is also looking to “transcend the traditional definition of venture capital” and adds that its customer value strategy helps founders accelerate their scale without access to additional growth capital.