VC mega funds are back with General Catalyst, Spark rumored to be raising billions

In a striking turn of events in the venture capital landscape, General Catalyst is reportedly in discussions to raise a colossal $10 billion. This move follows Thrive's recent announcement of its own record-setting $10 billion fund, which doubled its previous fundraising efforts. General Catalyst, which has repositioned itself as a diversified financial services entity, raised $8 billion just two years ago in 2024. Meanwhile, Spark Capital is making headlines as it seeks to raise $3 billion, a significant leap from its earlier fundraising efforts. According to sources from The Information, this new fund could mark a substantial boost for the firm. Additionally, Founders Fund is on the verge of finalizing a $6 billion fund, as reported exclusively by TechCrunch. This surge in funding follows Andreessen Horowitz’s impressive announcement of $15 billion in new capital earlier this year. As of the end of 2025, venture firms were already sitting on a historical amount of dry powder—funds available for investment but not yet allocated, according to a report by PitchBook and the National Venture Capital Association. Looking ahead, 2026 appears poised to be a year of unprecedented opportunities, particularly for well-known venture firms with strong portfolios. Industry experts predict that these firms will continue to pour significant capital into seed-stage AI startups, driving record-breaking funding rounds and valuations. The trend suggests that for AI-focused startups, securing massive initial investments will likely become the standard in the coming year.