General Catalyst
A venture firm with a growth fund that finances app user acquisition.
- 1App spends on UA$10M in January
- 2GC finances up to 80%$8M at roughly 10% annualized
- 3Monthly cohort earns revenueTracked cohort by cohort
- 4Cohort earnings repay financingEven if it takes three years
From General Catalyst growth fund
What was said about General Catalyst
General Catalyst finances up to 80% of app user acquisition, repaid by cohort. Its growth fund funds up to 80% of UA spend, tracked by monthly cohort. If an app spends $10M in January, $8M is financed at roughly 10% annualized interest.
Repayment comes from that cohort's earnings, even if it takes three years. It is non-dilutive and not a recourse loan, so founders are not personally at risk the way they would be putting spend on a credit card.
The financing is open only to larger, proven apps for now. General Catalyst currently offers this to larger apps with proven economics. Smaller versions of the product could exist.
The idea is to use UA financing that repays from each cohort instead of raising dilutive equity.
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It funds up to 80% of user acquisition by monthly cohort, so $10M of January spend gets $8M financed. Interest is about 10% annualized, repayment comes from that cohort's earnings even if it takes three years, and it is open only to larger proven apps.
General Catalyst finances up to 80% of app user acquisition, repaid by cohort. Its growth fund funds up to 80% of UA spend, tracked by monthly cohort. If an app spends $10M in January, $8M is financed at roughly 10% annualized interest.
Repayment comes from that cohort's earnings, even if it takes three years. It is non-dilutive and not a recourse loan, so founders are not personally at risk the way they would be putting spend on a credit card.
The financing is open only to larger, proven apps for now. General Catalyst currently offers this to larger apps with proven economics. Smaller versions of the product could exist.
The idea is to use UA financing that repays from each cohort instead of raising dilutive equity.
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