This edition of Deal Talk features a conversation with Hemant Taneja, CEO of General Catalyst, one of the world’s most prominent venture firms with more than $40 billion in assets under management and a portfolio of over 800 companies, including Stripe, Airbnb, Canva and Snap.

Taneja’s background is notable: born in Delhi and raised in Boston from the age of 15, he went on to earn five degrees from MIT, founded and sold a mobile software company early in his career, and joined General Catalyst in 2002 as an entrepreneur-in-residence. He later became Managing Director and, in 2021, CEO.

He has also emerged as one of the industry’s leading advocates for responsible innovation, emphasising accountability, ethics and long-term societal impact in AI and technology.

The discussion with Steffen Pauls, Moonfare’s Founder and co-CEO, explored General Catalyst’s playbook for investing through uncertain markets, the opportunities emerging in Europe and India, and Taneja’s view on why market bubbles can sometimes be beneficial.

Here're a couple of highlights from the conversation:

Why bubbles can be a good thing

When a bubble forms, it mobilises many of the world’s smartest people and a significant amount of capital to pursue breakthrough ideas. We saw this with the early internet—many companies didn’t survive, but it also produced Google, Meta and Amazon. The same happened with the cloud era, which led to the rise of major SaaS companies.

We’re seeing a similar dynamic with AI. Not every company receiving funding today will succeed, and there will be capital losses. But from an investment perspective, this is one of the most interesting moments to be active. Periods like this often produce extraordinary outcomes.

What makes a great founder

The founders we work with — the ones who build category-defining companies — are strong leaders who are absolutely obsessed with learning. After we back them, you can see them develop into global leaders in the way they think and build their companies. They have magnetic personalities that attract teams, customers and partners, and they constantly strive for excellence.

India: sleeping giant of entrepreneurship

India is highly entrepreneurial, and people there live and breathe this entrepreneurial spirit. Many have strong technical expertise and know how to build high-quality technology. There is also a cultural movement underway, with younger generations increasingly wanting to start companies. This is unlocking a great deal of latent potential, similar to what we’ve seen in Silicon Valley.