Snapchat’s early investor General Catalyst plans to raise $6 billion for tech startups in the US, Europe and India despite lack of funding

In a surprising turn of events, the venture capital firm common catalystEarly investors in companies like . Snap Co., Ltd.,, stripe and Mistralis seeking to raise nearly $6 billion in investments in tech startups, despite the fact that funding in the sector is currently drying up.

what happened: General Catalyst could finalize its latest fund as early as next month, the Financial Times reported on Sunday. The company plans to use the new funds to invest in various sectors including defense, space, climate, fintech and healthcare in the US, Europe and India.

This significant investment shows that institutional investors, endowments and foundations, also known as limited partners, remain willing to support high-profile companies amid widespread funding constraints.

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Under the leadership of Hemant Taneja General Catalyst, who took office in 2021, has focused on “responsible innovation” and fostered closer relationships with policymakers and regulators, particularly in the area of ​​artificial intelligence.

In the current scenario, a two-tier market has formed and new entrants are finding it difficult to survive. Nevertheless, General Catalyst’s unconventional approach to expanding into other countries and targeting sectors of established incumbents has found favor with limited partners.

why is it important: General Catalyst’s financing plan is Andreessen HorowitzThe company raised $7.2 billion, its largest funding since the end of 2022, according to PitchBook data. However, overall funding for U.S. venture capital firms has fallen significantly, with $81 billion raised last year, less than half of the total amount raised in 2022.

This funding success is notable, especially given recent concerns about the ‘frothyness’ of the technology sector. nicolai tangenCEO of norges bank investment management, the world’s largest wealth fund. Furthermore, the demand for responsibility for engineers is underpinned by: Elon Musk and Marc Andreessen This adds further complexity to the technology investment landscape.

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