General Catalyst, a venture capital firm that led a petition to back Silicon Valley Bank last weekend, aims to raise at least $5 billion for its next flagship fund, according to a person with knowledge of the matter.
(Bloomberg) — General Catalyst, a venture capital firm that led a petition to back Silicon Valley Bank last weekend, aims to raise at least $5 billion for its next flagship fund, according to a person with knowledge of the matter.Â
The firm has begun sounding out existing investors about its 12th vehicle, said the person, who asked not to be identified discussing confidential talks. Its last fund raised $4.6 billion and closed in February 2022.
General Catalyst hasn’t made final decisions on the fund’s size and isn’t expected to begin formal fundraising until later this year, people said. A spokesperson for the Cambridge, Massachusetts-based company declined to comment.
The VC firm, led by Chief Executive Officer Hemant Taneja, issued a statement over the weekend pledging to continue working with now-collapsed Silicon Valley Bank even if another entity bought it. More than 650 firms have signed the statement.
General Catalyst has backed startups such as Stripe, Airbnb Inc., Snap Inc., Warby Parker Inc. and Instacart. The firm bets on a range of industries, including health care, fintech, crypto, artificial intelligence, climate and education.
Watch: Hundreds of VC Firms Petition in Support of SVBÂ
General Catalyst’s latest fundraising campaign will test whether investors still have an appetite for startups in the current economic environment. Some of the largest — including Klarna, Instacart and Stripe — have slashed their valuations, suggesting private markets aren’t necessarily a safer bet than public investments.Â
If General Catalyst raises more than $5 billion for the new fund, it would be the fourth-largest US-based venture fund on record, according to data from Preqin.
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