Veteran venture capitalist Niko Bonatsos has stepped down from General Catalyst, the venture capital firm where he oversaw seeding investments and invested in popular companies such as Discord and Mercor. Niko Bonatsos will use his newfound free time to found a new venture capital shop targeting early-stage startups.
His departure from General Catalyst, announced at the end of 2025, was a parting due to mutual terms, according to Niko Bonatsos. He stressed his 15 years at General Catalyst were formative and that he will be working with ‘friends’: founders and investors with successful track records. He has yet to launch his company officially.
Impact on the Field and Future Outcomes
Niko Bonatsos’s leaving is significant to the investment scene in Silicon Valley. While investing at General Catalyst, he was instrumental in the early investment rounds for companies that have become leading forces in the tech world, including Discord, which is said to be lining up to go public, and Mercor, an AI-powered recruitment and training platform growing quickly into a $10 billion valuation.
In saying what the future holds, Niko Bonatsos expressed the continued focus on supporting young startups as well as innovative technology. He also mentioned the interest in focusing on the consumer sector, which he considers now being represented inadequately, given the focus on AI technology within the venture industry.
General Catalyst’s Strategic About-Face
Niko Bonatsos is the latest big name to step down from General Catalyst. Other top investors have also parted ways with the firm. General Catalyst has diversified its business model. Today, the firm offers wealth management services. It has also ventured into AI-Private Equity strategies. Furthermore, the firm provides new financing structures for late-stage companies.
Despite these shifts, the company is still investing in early-stage companies. It hired a former partner of Y Combinator to head its seed-stage investing in the U.S. last year, which signifies its steady commitment to the seed-stage investing space.
Background on Major Investments
Discord, a social communication tool that Niko Bonatsos backed early on, has evolved to be a widely popular service and is reported to be considering an IPO in 2026. Then there is Mercor, a startup that is AI-focused and has earned popularity for its novel hiring and training tools, and has achieved a valuation of multiple billions of dollars.
Niko Bonatsos’ departure and new venture might gain interest from founders and LPs who are interested in early-stage investment trends, especially as it pertains to technology and consumer startup sectors. Analysts have noted his ability to identify breakout businesses and how his new company could be a significant player should it obtain adequate resources.
Read Also: Michael Morales Breaks Silence After Teenage Loss Ends Perfect Professional Record
