Private Equity Buyer Tiger Global
Tiger, like its namesake, has become the most feared predator in early and later-stage growth technology private funding. Because of their exceptional performance record and large check writing ability, not only do they have the cache of being among the elite technology growth investors in the world, but they move much much faster with far less traditional due diligence. Tiger is also willing to pay more than anyone else, which makes it very hard to refuse their funding. Tiger has now made 600 investments since 2013, among them some of the most successful young technology companies in the world. With one of the highest investment velocities of any fund, Tiger has already invested in 187 companies in 2021 with a median check size of $114M and a median post-money valuation of $1.45B. As an LP, you would typically hesitate to invest in this buy high, shotgun style of investing, but in this crazy marketplace, it is working.
- Since the inception of its Private Equity business in 2003, Tiger has launched 15 funds and raised $28 billion in aggregate. In April, Tiger closed its $6.7B Fund XIV, representing the second largest VC fund in history and exceeding its target fund size of $3.75B by nearly two-fold.
- Tiger’s founding mission is to identify high-quality businesses levered to the most important secular growth trends. Tiger’s roots can be traced back to hedge fund management and The Tiger Fund, headed in the 1980s by now-retired “Wizard of Wall Street” Julian Robertson. The fund gained notoriety for anticipating the overpricing of technology securities that led to the dot-com bubble. Chase Coleman and Scott Shleifer launched the firm’s Private Equity wing in the wake of the burst, and the two continue to serve as the firm’s decision-makers today.
- Tiger leverages its reputation as a successful hedge fund investor to raise money for their venture funds. Bloomberg ranked Tiger Global first in their world hedge fund ranking in 2020, and CB Insights ranked it as the world’s most active VC investor in the second quarter of 2021 with 81 deals.
- The firm now operates Venture Capital funds that have invested 97% of capital in tech companies, specifically in the software, consumer, and financial technology spaces. Tiger’s geographical focus is North America and Asia, which account for 49% and 39% of its total investments, respectively.
- Of those 600 total investments Tiger has made since 2013, it served as lead or sole investor in 213 of them. Looking forward, Tiger is poised to raise another $10B for its newest Fund XV, which would be the largest VC fund ever outside of Softbank’s Vision fund.