Tiger Global plans cautious venture future with a new $2.2B fund

Tiger Global, the capitalist that spurred the VC bull marketplace of 2020-2021, is reportedly raising a caller $2.2 cardinal fund.

The steadfast sent a missive to imaginable constricted partners, according to a copy obtained by CNBC, seeking to rise the currency for a conveyance called Private Investment Partners 17 (PIP 17). The missive besides promises a much humble attack than during the 2021 bull-market madness.

During that time, Tiger Global was moving accelerated and investing abundantly, a method the task manufacture calls “spray and pray.”

PIP 15, raised successful 2021, was a whopping $12.7 cardinal money that pumped currency into startups astatine a blinding gait mostly astatine highest valuations, TechCrunch reported. 

In 2021 alone, the hedge money backed 315 startups, according to PitchBook data, and spurred bidding wars among VCs to get stakes successful adjacent unproven startups that ratched up valuations.

When involvement rates rose, the party was over, and startups spent years trying to unrecorded up to their 2021 valuations, many shuttering on the way.

After the task marketplace clang successful 2022-23, prolific Tiger Global capitalist John Curtius left to commencement his ain fund, and Scott Shleifer, the firm’s main of backstage equity investments, transitioned to an advisory role, portion Tiger’s famed founder, Chase Coleman, took connected a much nonstop role.

Tiger Global went connected to rise a overmuch smaller PIP 16 money of $2.2 cardinal successful 2024, Bloomberg reported astatine the time, which is, admittedly, inactive an tremendous fund.

Now, connected the spot of PIP 16’s blockbuster AI investments, Tiger Global is raising Fund 17. PIP 16 holds stakes successful OpenAI, Waymo and Databricks, each of which person had skyrocketing valuations and driven this fund’s insubstantial gains by 33% truthful far, the missive said arsenic reported by CNBC.

Still, successful a motion to the request for much caution than successful erstwhile years, the missive promised a much targeted approach. It acknowledged that leaning into AI investments could beryllium risky and necessitate “humility” due to the fact that “valuations are elevated and, successful our view, sometimes unsupported by institution fundamentals,” according to CNBC. (Tiger Global could not beryllium instantly reached for comment.)

In different words, adjacent arsenic Tiger Global raises a caller money to spell aft much large AI opportunities, it’s implying that the AI marketplace is successful a bubble, and it doesn’t privation to thrust valuations to adjacent higher, possibly unrealistic, heights.