TL;DR
Niko Bonatsos, who spent 15 years at General Catalyst and until last year led its seed investing strategy, has left the firm and plans to start a new early-stage venture capital outfit with colleagues. He has not yet named the firm or begun fundraising and said the split from GC was mutual.
What happened
After a 15-year run at General Catalyst, where he led the firm’s seed investing approach until last year, Niko Bonatsos has departed to form a new early-stage venture capital firm alongside partners he described as “friends.” Bonatsos is known for early backing of companies including Discord and Mercor, the latter described in the source as a $10 billion startup. He characterized his exit as a mutual decision and described his time at General Catalyst as a valuable learning experience. Bonatsos has not settled on a name for the new firm and has not started raising capital. He said potential team members include top-tier founders and investors, but declined to provide a headcount. Strategic themes he plans to pursue include supporting young founders and backing consumer-focused startups, which he views as underappreciated amid a wave of enterprise-focused AI ventures.
Why it matters
- A senior seed investor leaving during General Catalyst’s strategic expansion highlights shifting personnel dynamics at established VC firms.
- Bonatsos’ move may steer capital toward younger founders and consumer startups if his new firm follows the themes he outlined.
- General Catalyst’s broader push into wealth management, PE-style AI roll-ups and nondilutive late-stage financing continues alongside talent turnover, signaling a changing firm model.
- The departure contributes to a pattern of recent exits at General Catalyst, which could affect its early-stage presence and internal leadership.
- Bonatsos’ track record backing companies like Discord and Mercor gives his next venture the potential to influence early-stage deal flow.
Key facts
- Niko Bonatsos spent 15 years at General Catalyst.
- Until last year, he led General Catalyst’s seed investing strategy.
- He plans to launch a new early-stage venture capital firm with friends.
- Bonatsos did not yet choose a name for the new firm and has not begun fundraising.
- He is considering team members who he described as founders and investors “at the top of their game.”
- Bonatsos has backed companies including Discord and Mercor, the latter described as a $10 billion startup in the source.
- He said his exit from General Catalyst was a mutual decision and called his time there an “awesome experience” with many learnings.
- General Catalyst has recently expanded into wealth management, PE-style AI roll-up strategies and a Customer Value Fund offering nondilutive financing tied to recurring revenue.
- Other recent departures from General Catalyst include Deep Nishar, Kyle Doherty and Adam Valkin.
- Last year General Catalyst hired Yuri Sagalov to lead seed investing in the U.S.
What to watch next
- When Bonatsos will formally name the new firm and begin fundraising — not confirmed in the source.
- The eventual size and composition of his team, including which founders or investors join — not confirmed in the source.
- Whether General Catalyst’s seed investing cadence changes in response to recent departures — not confirmed in the source.
Quick glossary
- Seed stage: An early funding round for startups aimed at helping founders develop a product, prove market fit and prepare for later investment rounds.
- Nondilutive financing: Capital provided to companies that does not require giving up equity, often structured as loans or revenue-secured instruments.
- Venture capital firm: An investment firm that provides funding to startups and early-stage companies in exchange for equity and typically plays an active role in growth and governance.
- AI roll-up: A strategy that consolidates multiple companies in the artificial intelligence space to build scale, often using private equity-style acquisitions.
Reader FAQ
Why did Niko Bonatsos leave General Catalyst?
He described the departure as a mutual decision and said his time at the firm provided many learnings.
Is he starting a new VC firm?
Yes; he intends to launch a new early-stage venture firm with friends but has not yet named it or started fundraising.
Which notable companies did Bonatsos back?
The source cites Discord and Mercor, the latter described as a $10 billion startup.
Will General Catalyst stop making seed investments?
Not confirmed in the source. The article notes GC continues to make seed bets and hired Yuri Sagalov last year to lead seed investing in the U.S.
After leading General Catalyst’s seed strategy for years, Niko Bonatsos has departed the firm. Known for backing an IPO-hopeful Discord and the $10 billion startup Mercor, Bonatsos told TechCrunch he…
Sources
- Discord and Mercor investor Niko Bonatsos departs General Catalyst, plans new VC firm
- Early-Stage Investor Niko Bonatsos Leaves General Catalyst
- Discord and Mercor backer Niko Bonatsos leaves General …
- Niko Bonatsos Leaves General Catalyst, Considers …
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