TLDR:
- Tiger Global only managed to raise $2.2 billion for its new venture capital fund, falling well short of its $6 billion target.
- Investors have shown a low appetite for VC investments, possibly due to negative experiences with Tiger Global in recent years.
The hedge fund Tiger Global failed to reach its fundraising target of $6 billion for its new venture capital fund, only managing to secure $2.2 billion. This marks Tiger’s smallest venture capital fund since 2014, despite raising $12 billion for its previous fund. The difficulties in fundraising suggest a low appetite among institutional investors for venture capital investments, potentially influenced by negative experiences with Tiger Global.
Tiger Global’s rapid investments in startups during the 2021 bubble period, led by founder Chase Coleman, made it the most active investor in the U.S. and Israel. However, this strategy resulted in a collapse in returns in 2022, with a negative return of around 30% reported to investors. To reduce exposure to startup investments, Tiger began selling off a large portfolio of holdings in private high-tech companies, participating in fewer fundraising rounds in 2023 compared to 2022.
Tiger Global’s reduced activity in Israel coincided with the departure of John Curtis, who oversaw Israeli investments. Despite the setbacks, Tiger still owns shares in several large private technology companies like Stripe, Databricks, Shein, and ByteDance, as well as shares in a number of public Israeli tech companies issued in 2021.
