General Catalyst Plans $1B Continuation Fund to Manage Late-Stage Startup Stakes
General Catalyst is set to launch a continuation fund valued between $800 million and $1 billion, focusing on stakes in late-stage startups like Stripe, Gusto, and Circle. This fund allows the firm to retain management of its portfolio shares while providing original investors options to cash out or roll into the new fund. The rising popularity of continuation funds among venture capitalists reflects a shift due to fewer IPOs and M&A activities. Although beneficial, some limited partners may face losses due to the typical discount on secondaries. General Catalyst has not yet commented on this initiative.
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