General Catalyst closes $300m venture fund

Cambridge, Massachusetts venture firm General Catalyst Partners has closed a fund, its second institutional investment vehicle.

General Catalyst, which specializes in supporting technology entrepreneurs, today announced the closing of General Catalyst Group III on approximately $300 million (€239 million), according a spokesperson for the firm.


The fund had an initial close in September, but the announcement was delayed pending a final close on an affiliated entrepreneurs’ fund, the spokesperson said. The firm closed a $250 million fund in 2001. General Catalyst currently has 20 portfolio companies.


The fund was 'tremendously oversubscribed,' according to David Fialkow, a managing director at the firm. A placement agent was not used to raise the fund.


Founded in 2000, the firm focuses on the software, infrastructure software and applied technology sectors. General Catalyst prides itself on being composed only of partners with operating and entrepreneurial backgrounds.


'One of the reasons we've built a strong following is we've originated a lot of deals that otherwise would not have existed if not for the GC process,' Fialkow said.


Fialkow added the entrepreneurs' fund has commitments mostly from investors outside of General Catalysts' portfolio companies who the firm feels will be helpful in developing future projects.


In related news, General Catalyst announced the addition of Larry Bohn as a managing director. Bohn was chairman, president and chief executive officer of NetGenesis, a software and analytics company.


General Catalyst also named Ken Novack, a existing board member, as a special advisor to the firm. Novack recently retired as vice chairman of Time Warner, formerly AOL Time Warner.


Other General Catalyst managing directors include Joel Cutler, Bill Fitzgerald, David Orfao and John Simon.


The firm’s most recent investment was a $10 million round in Richardson, Texas-based GTESS Corp., which sells outsourced services to the healthcare industry. Waltham, Massachusetts-based Kodiak Venture Partners also participated in that financing round.