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

"Venture firms were already sitting on a record amount of so-called dry powder, meaning money available but not yet invested, at the end of 2025, according to the year-end report by PitchBook and the National Venture Capital Association. But 2026 is already shaping up as a year of bigger and more, at least for venture firms with name recognition and enviable portfolios."

"The obvious prediction is that VCs have plenty of money to keep fueling seed-stage AI startups with huge initial rounds and valuations. Record-breaking funding rounds for startups (as long as they are AI) will likely continue to be the new normal for 2026."

"General Catalyst is in talks to raise $10 billion, unnamed sources tell Bloomberg. This firm, which has recast itself as a broader financial services company, raised $8 billion just a couple of years ago in 2024."

Top-tier venture capital firms are pursuing unprecedented fundraising rounds in 2026. Thrive raised $10 billion for its largest fund ever, while General Catalyst negotiates a similar $10 billion raise and Andreessen Horowitz announced $15 billion in January. Spark Capital targets $3 billion and Founders Fund is closing a $6 billion fund. These firms possess record amounts of dry powder—uninvested capital—heading into 2026. The concentration of massive funds among established, well-known firms with strong portfolios suggests continued record-breaking funding rounds for AI startups, with substantial initial valuations becoming standard practice.

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