February is always a brief month, but this year it proved especially slow for many prominent venture capital firms. While some continued to invest steadily, the majority recorded lower deal counts than usual. In fact, only two major players—General Catalyst and Lightspeed Venture Partners—managed more than a few deals in the U.S. startup scene. Most other firms remained quiet, taking on fewer investments than in past months.
Interestingly, General Catalyst stood out with a double-digit number of deals. This surge of activity was unusual when compared to other big-name funds that paused or downsized their February investment plans. The swift pace of General Catalyst’s activities signals that, even in a slow market, opportunities still exist for well-positioned firms.
General Catalyst: The Power Player
General Catalyst emerged as the month’s most active participant in Venture Capital. It backed 15 different rounds for U.S.-based startups—its highest count in more than a year. This fast-paced approach was not just about quantity. General Catalyst also joined some massive funding rounds.
Most notably, it co-led a staggering $305 million investment for Together AI, alongside Saudi Arabia’s Prosperity7 Ventures. Together AI focuses on creating a cloud platform that helps developers build both open and customized artificial intelligence models. This generous backing, at a valuation of around $3.3 billion, underscores how AI remains a hot area in the startup world.
Beyond that, General Catalyst led a $200 million Series E for Verkada, a company pioneering new security systems for physical spaces. It also participated in a $600 million Series C for Saronic—a firm building autonomous surface vessels. Another highlight was the $351 million Series D for Eikon Therapeutics, which develops novel approaches to drug discovery.
These moves reveal General Catalyst’s belief that innovation in AI, security, autonomous technology, and health care can thrive even in a slow month. While many investors took a wait-and-see approach, General Catalyst pushed forward, setting the tone for the rest of the year in Venture Capital.
Lightspeed Venture Partners: Emerging Momentum
Lightspeed Venture Partners wasn’t as active as General Catalyst, yet it still managed an impressive eight deals involving U.S. startups. That count marked its busiest month since last October. It co-led an $110 million Series B for K2 Space, a satellite platform developer, alongside Altimeter Capital. This partnership indicates that space tech continues to attract major investments, despite broader market caution.
Additionally, Lightspeed participated in several other sizable rounds. Notably, it joined Saronic’s colossal raise, which illustrates its interest in autonomous vessel technology. Lightspeed also took part in Abridge’s $250 million round—co-led by investor Elad Gil and IVP—further signaling its focus on AI-driven health care tools. The firm even had a hand in Semgrep’s $100 million Series D, led by Menlo Ventures, reflecting Lightspeed’s continued commitment to application security and developer-facing tech.
These deals highlight that Lightspeed remains keen on broad tech categories, from space to health care and beyond. Although February was slow for most, Lightspeed showed it is ready to capitalize on niche markets whenever strong opportunities emerge.
Andreessen Horowitz: A Quiet Month
Andreessen Horowitz (often called a16z) usually makes headlines with large, splashy deals. Yet, February saw it finalize only six investments, its smallest tally since last April. It also did not lead or co-lead any major funding rounds during the month, which is unusual given its history of backing high-visibility projects.
Still, a16z joined some high-profile deals, including Saronic’s $600 million raise. It also invested in Sardine—a fraud detection platform leveraging AI—in that startup’s $70 million Series C, led by Activant Capital. Additionally, Andreessen Horowitz took part in Metronome’s $50 million Series C, which NEA led. Metronome specializes in usage-based billing, a model gaining traction among SaaS companies aiming for flexible pricing structures.
While February seemed slow for a16z, its involvement in AI and SaaS billing startups signals continued interest in data-driven technologies. The firm’s cautious stance might reflect current market challenges, or it may indicate a focus on carefully selected projects with significant long-term potential.
First Round Capital: Rising Back Into View
February also saw First Round Capital double its investments from January. This Philadelphia-based early-stage firm joined six deals last month, placing it among the more active investors in an otherwise quiet period.
One of First Round’s most notable moves was its participation in the $110 million Series B for K2 Space. The round underscores First Round’s strategy of investing in emerging sectors, like space tech, where innovation is rapidly accelerating. It also took part in the $49 million Series B for Fal, a generative media platform enabling developers to craft new applications.
Furthermore, First Round led a $6.5 million round for And AI, a legal tech startup. This step hints at a growing interest in niche technology fields that streamline traditional business processes through AI. The willingness to back younger startups at an early stage reaffirms First Round’s reputation for spotting rising companies before they become mainstream.
Why February’s Slowdown Matters
The venture capital market often mirrors broader economic trends, and February’s sluggish pace reflects the caution many investors feel during uncertain times. Rising interest rates, inflation concerns, and global events can all influence risk appetite. Still, despite these headwinds, leaders like General Catalyst and Lightspeed Venture Partners continued to invest heavily in high-impact sectors such as AI, space, security, and health care.
This contrast hints at a future where specialized tech innovations attract capital, even as investors become more selective about which startups to fund. For founders, it suggests that while the total number of deals may be lower, ample opportunity remains if their solutions address pressing market needs or pioneer new frontiers.
Looking Ahead
With February now behind us, all eyes are on the rest of the year in Venture Capital. Many firms may reignite their deal-making if market indicators stabilize. Startups operating in cutting-edge industries, especially AI and frontier tech, stand a good chance of raising capital. Nonetheless, competition for quality investments will likely intensify, prompting investors to move swiftly when they spot genuine potential.
\For venture capitalists, striking the right balance between caution and optimism will define their success in the months ahead. If February’s numbers are any indication, well-prepared and innovative startups can still secure large funding rounds. The question is: who will seize the moment next? Keep an eye on Startupmars for updates.
