General Catalyst Investors Depart as Firm Eyes IPO

Recent Leadership Changes at General Catalyst

A number of significant personnel shifts have recently occurred at General Catalyst, an organization that has redefined itself as both an “investment and transformation company.” TechCrunch has reported on the departure of three key investors.

Departing Managing Directors

Among those leaving the firm are Deep Nishar and Kyle Doherty. They previously co-led General Catalyst’s late-stage investment strategy, known as Endurance. Additionally, Adam Valkin, a leading figure within the firm’s early-stage fund, has also departed, sources indicate.

Requests for comment directed to Nishar, Doherty, and Valkin were not answered. General Catalyst itself has declined to provide any official statement regarding these changes.

Broader Restructuring Within the Firm

According to a limited partner connected to General Catalyst, these departures are part of a wider series of adjustments occurring within the company’s leadership structure.

Following the merger with European early-stage firm La Famiglia in October 2023, Jeannette zu Fürstenberg, the founder of La Famiglia, was appointed to a prominent senior partner position.

Approximately six months later, General Catalyst expanded its reach further by acquiring Indian VC firm Venture Highway. Neeraj Arora, the founder of Venture Highway, was subsequently integrated into the firm as a top-level senior investor.

Shifts in Compensation Structure

Sources familiar with General Catalyst’s internal operations suggest that the firm’s evolving strategic direction, moving beyond traditional venture capital, has impacted investor compensation.

A move towards prioritizing cash bonuses over equity-based compensation has reportedly been implemented.

Backgrounds of Departing Investors

Deep Nishar joined General Catalyst in 2021, bringing experience from his previous role at SoftBank’s Vision Fund. During his time at SoftBank, he was instrumental in securing investments in companies like Slack and 10x Genomics.

Kyle Doherty arrived at General Catalyst in 2017, following a five-year tenure as head of private investments at Coatue. His investment portfolio includes digital banking startup Step and insurance provider Ethos. His departure was noted on LinkedIn in July.

Adam Valkin’s association with the firm began in 2013. He currently holds a board position at Rapyd, a fintech company currently seeking funding amidst a valuation decrease, and Shift Technology, another fintech firm. He also previously invested in ClassPass, which was acquired by MindBody in 2021.

Firm Evolution and Potential IPO

These departures coincide with a period of significant transformation for General Catalyst, which currently manages $32 billion in assets. The firm is transitioning from a traditional partnership model to a more corporate structure.

This evolution includes the addition of non-venture initiatives, such as a wealth management division and the acquisition of a hospital system in Ohio.

Rumors have long circulated regarding General Catalyst’s ambition to become a publicly traded company. Recent reports indicate the firm is actively exploring the possibility of an Initial Public Offering (IPO), with Axios reporting they are in the “very early stages of considering” such a move.