General Catalyst IPO: Venture Capital Firm Considers Going Public

General Catalyst Explores Initial Public Offering

General Catalyst, a leading venture capital firm, is reportedly evaluating an initial public offering (IPO), according to a report from Axios published Friday morning. The information was provided by “multiple sources” familiar with the matter.

Seeking Confirmation

TechCrunch has contacted Hemant Taneja, the firm’s managing partner, to request a statement. Those who have been observing General Catalyst’s growth will likely find the possibility of an IPO unsurprising.

Early Beginnings and Expansion

Established 25 years ago in Cambridge, Massachusetts, General Catalyst initially managed $73 million in capital commitments. After a decade, bolstered by increasing assets and pre-IPO investments in companies such as Demandware and Brightcove, Taneja and partner Neil Sequeira established a presence in Palo Alto.

The firm quickly gained prominence in the Bay Area, replicating its East Coast success in software investments. Furthermore, it cultivated strong relationships with Y Combinator, which proved highly beneficial.

Key Investments

In 2011, General Catalyst secured an investment in Airbnb. The following year, in 2012, the firm committed to providing funding to every startup emerging from Y Combinator, without prior review.

Also in July 2012, GC spearheaded the Series B funding round for Stripe – currently Y Combinator’s most valuable alumni, despite the fintech company stating it has “no immediate plans” for an IPO.

Significant Growth and Diversification

While Sequeira departed in 2015 to launch his own venture, General Catalyst has experienced substantial growth. Today, the firm boasts a team of over 20 managing directors and manages assets exceeding $30 billion.

Its operations have expanded considerably beyond traditional venture capital. As previously reported in October following an interview with Taneja, the firm is significantly different from its earlier iteration.

New Ventures

Among its recent initiatives, General Catalyst has introduced new financing products and a wealth management service. It is currently in the process of acquiring a small healthcare system located in Ohio, and has also completed the purchase of two smaller venture firms.

Potential First Mover

Axios raises a pertinent question: could General Catalyst be the first venture firm to go public? The answer depends not only on the firm’s decision, but also on whether discussions surrounding an offering will accelerate similar plans at other major firms, such as Andreessen Horowitz, which appear to be pursuing the same objective.