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

• 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