Venture Capital: General Catalyst And German VC Firm La Famiglia In Rare Merger Transaction

October 18, 2023 | News, Venture Capital

Jeannette zu Fürstenberg, founding partner of La Famiglia, will become managing director at GC, equivalent to a general partner role.

The German early-stage fund La Famiglia, known for its successful investments in companies like Personio and Deel, is teaming up with the prominent US venture capital firm General Catalyst, which has notably backed Airbnb (NASDAQ: ABNB) and other ventures. This merger is a rare occurrence in the world of venture capital, with one of the United States’ largest and most active investors strengthening its presence in Europe, reflecting the growing global importance of the European tech ecosystem.

Jeannette zu Fürstenberg, a founding partner of La Famiglia, will take on the role of managing director at General Catalyst, effectively a general partner position. She will play a pivotal role in establishing a global seed investment program. Judith Dada, a general partner at La Famiglia, will become a partner at General Catalyst. The deal is expected to be completed in the first half of 2024. (Sifted)

The La Famiglia teams will continue to operate from Berlin and Munich under the La Famiglia brand, making General Catalyst the first major US venture capital firm with a substantial presence in continental Europe. Most US firms have historically concentrated their European operations in London.

While financial details of the deal remain undisclosed, both firms have expressed their intention to raise joint funds in the future. General Catalyst, established in 2000, expanded to London in 2021 and shares several investments with La Famiglia, spanning from seed-stage to growth-stage startups.

The motivation behind this partnership lies in the ability to scale investments in terms of talent and assets under management, a goal that would have taken La Famiglia a significantly longer time to achieve independently. Furthermore, both partners see an opportunity in supporting companies requiring long-term capital for growth, especially in areas like climate, industrials, and defense. This move aligns with their vision of investing in hardware and manufacturing as the next wave of innovation, moving beyond software and keeping a long-term perspective.

Related Story:  Stripe Raises $6.5B At A Heavily Truncated Valuation Of $50B

Image by Gerd Altmann from Pixabay

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