Hamont explains that General Catalyst has evolved from a small venture fund into a global firm focused on transforming industries like healthcare, defense, and energy through AI-driven innovation, especially by modernizing labor-intensive sectors. The firm emphasizes actively integrating AI into its portfolio companies to enhance efficiency and competitiveness while supporting founders committed to solving impactful problems and adapting the workforce for future growth.
In the interview, Hamont discusses how General Catalyst (GC) has evolved over the past 20 years from a small East Coast venture fund to a global investment and transformation company. Initially focused on software companies that improved efficiency, GC now invests in startups that are transforming major societal sectors such as defense, healthcare, energy, and industrials. This shift reflects the broader scope of opportunities available to entrepreneurs today and the firm’s commitment to supporting founders tackling large-scale, impactful problems.
Hamont explains that GC’s strategy has expanded to include rolling up industries like accounting and customer service, integrating AI to revolutionize these sectors. The firm views itself as playing a role in two major global trends: increasing regional resilience by reshaping supply chains and serving critical industries better, and harnessing the transformative power of artificial intelligence. These trends guide GC’s investments, with a focus on transforming traditional industries through AI-driven solutions, especially in healthcare and service-oriented sectors.
A key aspect of GC’s approach involves transforming outsourced labor-intensive industries—such as call centers, legal, and accounting services—by leveraging AI to bring these functions onshore and automate them. Hamont emphasizes that AI can significantly improve efficiency and customer experience, creating opportunities for growth and innovation. However, he also acknowledges the potential for job displacement, stressing the importance of reskilling and adapting the workforce in real time as AI replaces certain human roles.
Compared to traditional private equity, GC’s strategy is distinct in its focus on actively transforming and modernizing acquired companies through AI integration. Instead of merely optimizing existing operations, GC aims to make these businesses more technologically advanced and valuable. This approach involves marrying acquisitions with AI teams and fostering innovation, ultimately creating more competitive, modern AI-enabled companies with improved margins, customer experience, and market relevance.
Finally, Hamont highlights the qualities GC seeks in founders: authenticity, mission-driven focus, and a genuine desire to solve meaningful problems. He dispels the misconception that venture capital is about pattern recognition, noting that the most successful companies are highly diverse and don’t resemble each other. Looking ahead, GC aims to be a category-defining firm by partnering with ambitious entrepreneurs to build enduring companies and transform entire industries over the next decade.