Call for Change

from page 83

(where we are determined to accelerate our lead in investments and partnerships through the lens of our health assurance thesis); fintech and crypto (where we are focused on the convergence of those two ecosystems and what that means for a more inclusive financial system); AI (with a renewed focus on its responsible use and deployment); climate (admittedly we are in the early stages of this, but its importance is undeniable); the digital transformation of India (where we see tremendous opportunity to spawn some truly globally important companies); and the need to build more globally resilient systems in the areas of education and workforce transformation, security, defense and intelligence. These are a handful of things we’re working on. The list will evolve and change (part of our organizational growth mindset) but everything we seek to do will revolve around creating enduring companies that begin to address society’s biggest problems.

In this year-end reflection we at General Catalyst are calling for a change: for our industry to double down on the principles of Responsible Innovation and to commit to new behaviors as we build and scale companies in this brave new world. Specifically, we’re advocating for the following 9 ‘reframes’:

1. From celebrating disruption to embracing ‘radical collaboration’ (committing to working with innovation-minded leaders within the industries we’re actively trying to transform)

2. From pure serendipity to greater intentionality (leaning into the power of a prepared mind; having a clear point of view and thesis on how the world is changing and how it needs to change–and working to advance that thesis through thoughtful strategic investments)

3. From elitism to inclusive opportunity (acknowledging that our industry has contributed to the consolidation of wealth and power among a select few and by committing to create inclusive opportunity as part of a fairer and more sustainable society; always asking the question: ”who wins and who loses?”)

4. From just backing or even building companies to transforming industries and society (taking a broader perspective on the large scale changes we’re trying to affect)

5. From ‘exit’ as the sole endgame to building enduring enterprises that also create liquidity for investors (truly acting in service of building enduring, compounding businesses that stand the test of time)

6. From financial OR societal benefit to financial AND societal benefit (abandoning the false choice of doing good or doing well)

7. From ‘ESG’ (focused on corporate outputs) to responsible innovation (focused on a new set of inputs–purpose built for the venture space–at all stages of company building)

8. From a ‘cult of personality’ to a ‘cult of purpose’ (abandoning the egoic worship of the individual investor or founder in favor of a sense of shared purpose and outcomes)

9. From investment partnership to cohesive company (where team, mission and culture really matter and we become enduring businesses in our own right)

I know there’s a lot of inherent cynicism in the world and in our industry. Some critics might dismiss this call to arms as the privilege of someone who has already enjoyed success and now has the luxury to consider impact and legacy. But I would argue that it is a necessity for our business as we move forward. This is a movement and it is growing…as evidenced by the exceptional and diverse talents outside our own investment team who are joining us on our journey. And supported by all of my magnificent partners at General Catalyst, including our chairman and my mentor Ken Chenault, who set us on this path and continues to inspire our progress. I believe our resolve to lead here will best prepare us for success in the future.

You can interpret the Chinese proverb as a curse or a blessing. We are short-term cautious about the days ahead, but long-term optimistic, driven by a belief that these interesting times will yield some of the world’s most interesting and impactful companies https://www.generalcatalyst.com/perspectives/ hemants-year-end-letter-to-lps

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