The Newest Fund for Tiger Global
The investment company based in New York, Tiger Global, recently raised a historic $6.65 billion in its newest venture fund. According to its latest SEC filing, the company overshot its initial goal of $3.75 billion by nearly $3 billion. This is largely attributed to the significant enthusiasm from businesses in the investing world that Tiger Global has continued to impress.
The money was raised by a diverse group of sovereign wealth funds, foundations, endowments, and pensions. However, the largest investors in Tiger Global continue to be its own employees, who put their money into the firm as the largest signifier of belief.
By no means is the enthusiasm from investors unwarranted either — the company significantly investing in some of the most successful startups and businesses in recent years. Tiger Global has backed names such as Stripe, Roblox, Postmates, and Credit Karma. Now all fully fledged companies, each has proven Tiger Global as having one of the premier eyes for burgeoning businesses in the industry.
For reference, Stripe is now valued at $95 billion, Roblox currently has a market cap of $38 billion, and Postmates and Credit Karma were each recently sold for $2.35 billion and $7 billion, respectively. Another recent winner for Tiger Global was fitness technology company Peloton, whose successful IPO in 2019 helped boost the investment business even higher, as it held a 20% stake at the time.
Investment Strategy for the Latest Fund
Now in its thirteenth fund, Tiger Global has a lot more ease in its overall investment strategy. Instead of needing to follow a strict set of guidelines, the business can invest in startups as it pleases. The company has ranged from funding startups still in their Series A round all the way to businesses in the pre-IPO stage. At the same time, Tiger Global has no regional focus either, having invested in businesses and startups in over 30 different countries over its history.
While it may seem wide-ranging, these investments are not made at random. Instead, all funding decisions are still run by the two heads of the company, Scott Shleifer and Julian Roberston. All final decisions were also run by Lee Fixel until he left the company in 2019 to create his own investment firm. This basic strategy remains in place today as Shleifer and Robertson remain the two heads who make the final call on all startups. While Shleifer and Roberston make the executive decision, the firm now boasts 22 other investment professionals.
Tiger Global looks poised to lead a renewed investing charge with deeper pockets than ever before, given the rebound that venture capital is looking to make in 2021, after a down year in 2020.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.