Tiger Global pumps the brakes on VC deals

Tiger Global, which emerged as the poster child of highly valued venture deals in recent years, has eased off of leading outsized rounds in recent months, according to PitchBook data.

 

Since March, the average monthly value of deals led by Tiger Global is less than half what it was in 2021. The firm’s overall activity remains high, however, as it has increased participation in early-stage deals with smaller check sizes, the data showed.

The cooldown follows reports that the firm’s public fund lost $17 billion in the first quarter following the market’s tech sell-off. Young technology companies have been hit particularly hard: PitchBook’s VC-backed IPO index has declined more than 50% this year.

Tiger Global has already deployed much of the $12.7 billion VC fund that it closed in March, TechCrunch reported. And it is in discussions with LPs to raise a new venture vehicle, according to Fortune.

As funds are depleted, managers typically reserve the remaining cash for follow-on investments in existing portfolio companies. That does not appear to be the case for Tiger Global this year, as a majority of deals are in new companies rather than follow-on investments.

Tiger Global’s descent from recent dealmaking highs mirrors SoftBank’s recent indication that it would cut its startup investment in this next fiscal year by more than half. The ongoing commitment of large, late-stage investors is critical to the venture ecosystem, which must find ways to continue financing money-losing companies despite turmoil in the markets.

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