Venture Capital: Tiger Global Is Raising Its Thirteenth $3.75B Venture Fund
The new fund follows within a year of the closing of Tiger’s twelfth fund of a similar amount.
According to an exclusive report by TechCrunch, Tiger Global Management is raising its thirteenth venture fund. The $3.75 billion fund is named Tiger Private Investment Partners XIV, however. TechCrunch cited the firm’s recent investor letter, though a Tiger spokesperson did not comment.
The new fund will close in March, TechCrunch said.
Tiger Global – recent winners
Tiger invested in Yatsen Holding (NYSE: YSG), currently valued at $14 billion, after its IPO in November. It also backed Snowflake (NYSE: SNOW), now valued on the public markets at $85 billion. The VC owned 10.3% in Root (NASDAQ: ROOT) insurance which listed in November. It’s now worth $5.3 billion.
Three Tiger investees Postmates, Credit Karma, and Kustomer were acquired during 2020 – by Uber (NYSE: UBER), Intuit (NASDAQ: INTU), and Facebook (NASDAQ: FB), respectively.
Tiger Global – hallmark deals
Tiger also made some deals that generated profits in the billions. These include its $200 million investment in e-commerce heavyweight JD.com (HKG: 9618) that eventually returned $5 billion.
Tiger reportedly made over $1 billion from its investment in Meituan (HKG: 3690) which went public in 2018.
Another winner is India’s Flipkart which sold to Walmart in 2018. Tiger is said to have cleared $3 billion from that investment.
Untold billions could come from Tiger’s 20% stake in fitness company Peloton (NASDAQ: PTON), currently valued at over $48 billion.
Tiger generated a gross internal rate of return of 32% across its 12 previous funds. Net IRR was 24%, according to the investor letter seen by TechCrunch.
With a track record like that, subscriptions to Tiger’s new fund should come in thick and fast.
Typically, Tiger’s investors include sovereign wealth funds, foundations, endowments, pensions, and its own employees.
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