February was a quiet month for many top venture capital firms, with only a few standing out in deal volume. General Catalyst led the way with 15 investments, while Lightspeed Venture Partners was the only other firm to exceed six deals. Despite the slowdown, certain firms continued making high-impact investments, particularly in AI and emerging technology.
General Catalyst Venture Capital: Betting Big on AI and Security
While other firms scaled back, General Catalyst remained active, making 15 investments—the most in over a year. The firm participated in several major funding rounds, emphasizing its confidence in AI-driven platforms and security solutions:
- Together AI – Co-led a $305 million funding round with Prosperity7 Ventures, valuing the startup at $3.3 billion. Together AI develops cloud platforms for custom AI models.
- Verkada – Led a $200 million Series E for the physical security systems provider.
- Saronic – Took part in the $600 million Series C for autonomous vessel technology.
- Eikon Therapeutics – Invested in the biotech firm’s $351 million Series D round, backing its advancements in drug discovery.
Lightspeed Venture Partners: Steady Deal Flow in Deep Tech
February marked Lightspeed Venture Partners’ busiest period since October, with eight deals focused on deep technology and AI:
- K2 Space – Co-led a $110 million Series B with Altimeter Capital, supporting the satellite developer’s next phase.
- Saronic – Contributed to the $600 million Series C, reinforcing its interest in autonomous systems.
- Abridge – Took part in the $250 million round for the AI-driven medical documentation platform, alongside Elad Gil and IVP.
- Semgrep – Helped fund the $100 million Series D for the cybersecurity automation company, led by Menlo Ventures.
Andreessen Horowitz: A Noticeable Slowdown
Unlike its usual aggressive investment pace, Andreessen Horowitz (a16z) closed just six deals—its slowest month since April 2023. While a16z didn’t lead any major rounds, it maintained a presence in select industries:
- Saronic – Participated in the $600 million Series C.
- Sardine – Invested in the $70 million Series C for the AI-powered fraud detection startup, led by Activant Capital.
- Metronome – Took part in the $50 million Series C for the billing and subscription management platform, led by New Enterprise Associates.
First Round Capital: A Stronger Presence
First Round Capital doubled its investment count from January, making six strategic deals:
- K2 Space – Participated in the $110 million Series B.
- Fal – Backed the $49 million Series B for the generative media platform.
- And AI – Led a $6.5 million funding round for the legal tech startup, reflecting its support for industry-specific AI applications.
While February saw a drop in VC activity, General Catalyst and Lightspeed Venture Partners demonstrated continued confidence in AI, security, and emerging tech sectors. With economic uncertainty lingering, the coming months will determine whether venture deal flow picks up or if firms continue taking a selective approach to funding high-growth startups.
