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Tiger Global famously fueled the pandemic - era venture cap boom , invest heavily in a wide compass of startup , setting up bid wars for even the most unproven inauguration that top to sky - high valuation . In 2021 alone , the hedge fund backed315 inauguration , according to PitchBook data .
And much of the VC industrywas not happy about it , even at the time . Toward the last of 2021 , the New York house win over its investor to commit $ 12.7 billion for its 15th speculation investment company ( titled PIP 15 ) and then proceed to plough the majority of that working capital into more startup over the next several months . By May of 2022 , most of the money in that investment company had already been in full invested , TechCrunch report .
The house ’s lively investment strategy backlash . When the U.S. Fed began to rapidly raise interest rates in 2022 , money grew tight and valuations of startup dropped importantly . And , as 2024 closes , the impact of Tiger ’s influenceis still being felt as inauguration are still grapplingwith not living up to their 2021 valuations .
And here ’s the thing : a recent disclosure by one of Tiger ’s investors shows that the investing performance of Tiger Global ’s fifteenth investment trust is particularly poor , while many other funds of the era had moderate returns .
As of June 30 2024 , the newspaper release on Tiger Global PIP 15 stand at more than 15 % , according to a recently releasedreport from California State Teachers ’ Retirement System(CalSTRS ) , one of Tiger ’s investors . Such outrageous losses put the fund in the bottom 10 percent of all speculation funds raised in 2021 , harmonize to the latestPitchBook Benchmarks .
The firm marked down many of the investment it made for peak valuations , including email company Superhuman , down by 45 % , search engine DuckDuckGo by 72 % and NFT marketplace OpenSea by 94%,Bloomberg reportedlast year .
Tiger Global and CalSTRS slump comment .
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It ’s genuine that a VC investment company typically claim 10 years before whatever riposte it attain are not just newspaper publisher , but lock in , through exits or other fiscal sales . So it ’s possible that some of these company will grow back and beyond their 2021 highs .
However , other 2021 time of origin funds in the CalSTRS portfolio are faring noticeably better . For example , Valor Equity Partners ’ 5th fund newspaper return ( a measure known as internal rate of return ) endure at a full-bodied positive 15.7 % , according to the account . Meanwhile , the 2021 funds from OakHC / FT , IVP , and GGV ( which this year rebranded asNotable Capital ) have generate take of 8.7 % , 4.1 % , and 2.8 % , respectively .
Although many large venture investor , includingAndreessen Horowitz , General Catalyst , andKleiner Perkins , follow in raising substantive funds this yr , Tiger Global curtailed its private markets dream in part because it could n’t rear as much fresh capital as it originally mean . Specifically , in October 2022 , Tiger Global determine out to set up $ 6 billion for its sixteenth private markets fund . The store target was later on retool to $ 5 billion , the Wall Street Journal report .
But the New York house failed to lift even half of its new finish . After fundraising cap for about 18 calendar month , PIP 16 close with just $ 2.2 billion in commitments earlier this year , Bloomberg reported . That ’s still a goodish fund . But not compare to its earlier ambitions .
Still , Tiger Global still has a considerable war chest to commit in startup . So far this yr , the house participated in 24 VC deals , including Waymo , OpenAI , Scale AI and Wiz , according to PitchBook datum .
Although nearly three twelvemonth have passed since the height of Tiger Global ’s investing frenzy , it will take prison term for the house to shake off its reputation as an investor that made many incorrect wager during the pandemic .
Some of the people who were in charge of that era ’s rapid fervency VC investment scheme are no longer at the business firm . John Curtius , one of the leading VC investor at Tiger Global , leave behind the firm in former 2022to start his own firm , called Cedar Investment Management . According to report , the firm was looking to raise $ 1 billion . It ’s not yet clear if the fund was raised nor if it began to make investments . Tiger Global ’s VC headScott Shleifer also transitionedto an adviser role at the start of the year .
