General Catalyst faces the departure of three key investors as the firm expands into new areas beyond venture capital and considers an initial public offering (IPO)

Three key investors have left General Catalyst amidst recent changes at the firm, which now positions itself as an “investment and transformation company,” as reported by TechCrunch.

Reasons for the departures are unclear, but there have been significant leadership changes within General Catalyst. Following a merger with European early-stage firm La Famiglia in October 2023, Jeannette zu Fürstenberg, La Famiglia’s founder, was appointed as one of the top senior partners. Additionally, General Catalyst acquired Indian VC firm Venture Highway, with its founder, Neeraj Arora, also becoming a top senior investor at the firm.

The departures of managing directors Deep Nishar, Kyle Doherty, and Adam Valkin coincide with General Catalyst’s strategic shift beyond venture capital. The company has adjusted its compensation structure to prioritize cash bonuses over equity, according to sources close to the firm.

General Catalyst, managing $32 billion in assets, is transitioning from a partnership-model firm to a company, incorporating non-venture strategies like a wealth management business and the acquisition of a hospital system in Ohio. Rumors suggest that the firm is considering going public, with reports indicating it is in the early stages of exploring an IPO.