General Catalyst, a16z capture 44% of 2024 US VC fundraising

Plus: Mideast nations pouring capital into AI startups, and upsides of newer VC firms

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Despite a major LP pullback from venture, an elite cohort of VC firms is still successfully raising huge sums of LP capital, VC reporter.

General Catalyst, a giant of Sand Hill Road that has led rounds for companies like Snap, Warby Parker and Deliveroo, is wrapping up a $6 billion VC fund, the Financial Times reported Sunday. Earlier this month, Andreessen Horowitz announced it had raised $7.2 billion across five fund strategies.

Assuming General Catalyst successfully closes its new vehicle on $6 billion, the two firms will have attracted a combined $13.2 billion—approximately 44% of the total LP capital committed to US VC funds since the start of the year, according to PitchBook data.

Some LPs have retreated toward top-tier venture firms in recent years or refused to sign on with new GPs, reflecting a slowdown in appetite for emerging managers.

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How the Middle East's AI ambitions are spurring VC investment

As the global race for AI dominance intensifies, Middle Eastern nations are putting more capital into developing the technology—and startups are reaping the rewards, writes PitchBook's Leah Hodgson .

The region saw a record number of VC deals for generative AI startups in 2023, with 39 rounds closing for a combined $415.1 million. Although funding levels dipped in the first three months of 2024, dealmaking has remained resilient, with deal value registering above historical norms.

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The upside of up-and-coming fund managers

Established managers have an edge in the downtrodden fundraising market—and with good reason. They have earned trust with LPs and can pin their reputation on real returns.

But there's a risk to overlooking upstarts, warns PitchBook analyst Zane Carmean . The top emerging managers in multiple strategies can offer higher upside potential than tried-and-true firms, according to our latest analyst note—which covers performance trends across PE, VC, real estate and private debt funds.

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