Earlier this month, investment firm Tiger Global announced that it raised one of the largest pots of VC money ever: $6.7B.
As detailed by TechCrunch, the news caps off an incredible streak for the firm’s tech ambitions:
- Roblox: Tiger Global owned 10% of the sandbox gaming startup when it went public in March at a valuation of $38B+
- Stripe: Tiger Global saw the value of its stake in the fintech firm rise when Stripe announced a $600m raise at a $95B valuation
- M&A wins: 3 of Tiger Global’s portfolio companies were acquired in billion-dollar deals in 2020 (i.e., Postmates, Kustomer, Credit Karma)
Tiger Global was founded as a NY-based hedge fund…
… in 2003 by Chase Coleman, who previously cut his teeth with investing legend Julian Robertson at Tiger Management.
Over the years, the firm expanded its mandate to include private equity and venture investing; Tiger Global’s $6.7B fund is its 13th VC fund.
Today, it manages $65B
And the firm’s ~100 employees are its biggest shareholders.
Per The Information, the secret ingredients behind Tiger Global’s recent tech success include:
- Speed: It moves very fast on deals, closing some in just 3 days.
- Huge war chest: Its massive pile of money is matched by few in venture capital, and the firm is willing to spend.
- Resources: Tiger Global pays for portfolio companies to access high-priced consultants for advice (e.g., Bain).
- Pre-emptive offers: Tiger Global approaches startups that aren’t even in fundraising mode and throws big offers.
- Long-term holders: Since Tiger Global also operates public market hedge funds, it provides price stability for startups because — unlike traditional VCs — it doesn’t have to distribute funds after an IPO.
Through Q1 2021, Tiger Global has already closed 60 tech deals (~4+ a week).
Go to where the money is
In 2020, US startups were involved in acquisitions or public listings that totalled a record $290B per The Information.
Tiger Global’s increased deal activity coincides with this wild spending spree.
And it might only get crazier in 2021: Tiger has bets on ByteDance, Discord, Hopin, and — wowzers — a ~10% stake in crypto exchange Coinbase with a potential value of $10B when it goes public this week.
