CosmicTaco

General Catalyst Plans 'Continuation' Fund Worth Up to $1B

CosmicTaco · 2024-10-08T08:22:51.761655+05:30

- General Catalyst, a major Silicon Valley capital firm, is planning a 'continuation' fund worth between $800 million and $1 billion. - The fund will consist of stakes in portfolio companies, likely including Stripe, Gusto, and Circle. - Once established, original investors can choose to sell their shares or stay invested in the new fund. - Continuation funds allow VCs to manage shares and retain future upside, and are considered more founder-friendly than secondary sales. - However, they can present a dilemma for certain investors due to the substantial discount at which secondaries sell. Source: [Techcrunch](https://techcrunch.com/2024/10/07/general-catalyst-is-working-on-a-continuation-fund-worth-up-to-1b-sources-say/)

General Catalyst, a major Silicon Valley capital firm, is planning a 'continuation' fund worth between $800 million and $1 billion.
The fund will consist of stakes in portfolio companies, likely including Stripe, Gusto, and Circle.
Once established, original investors can choose to sell their shares or stay invested in the new fund.
Continuation funds allow VCs to manage shares and retain future upside, and are considered more founder-friendly than secondary sales.
However, they can present a dilemma for certain investors due to the substantial discount at which secondaries sell.

Source: Techcrunch