It looks like one of the most prolific investors in tech is feeling less confident about its pandemic-era investments.
Tiger Global Management has been working with banks to sell off VC fund investments in the secondary market, The Information reported. It’s unclear what stakes the firm tried to sell, or if it was successful.
Tiger Global was an incredibly active investor in the tech ecosystem during the pandemic-era funding boom, and it also contributed investments to several VC firms during this time period. According to Crunchbase data, the firm invested in 139 startups in the first quarter of 2022 alone.
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But following a dramatic dip in the stock market in 2022, and its ripples in the private market, Tiger Global reported in fundraising documents that its portfolio companies slashed their valuations by billions. Tiger Global, one of the largest investors in tech at the time, quickly stopped its investment streak. Per Crunchbase data, the company only invested in 45 startups in the latter half of 2022.
A bleak private market ahead?
It’s a clear sign that Tiger Global, and perhaps the venture community at large, isn’t confident in a market bounce back anytime soon. Tiger Global was one of the first wealth management companies to pull back from dealmaking back in February 2022. Indeed, global venture funding continues to slow down in Q1 2023, save for the tech world’s recent obsession with generative artificial intelligence.
But it looks like things are looking up for the company, albeit only slightly. Tiger Global’s hedge fund posted 7.3% gains in the first quarter of 2023, according to Bloomberg. The firm’s fund dropped 56% and its long-only fund dropped 67% between 2021 and 2022 (to recoup losses, each fund would need to see a gain of 144% and 216% respectively).
Illustration: Dom Guzman
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