If you keep up with investments at really any stage then you know about Tiger.
They’re relentlessly investing, and pushing forward even through adversity. Now when I say adversity, you may know about Lee Fixel leaving Tiger to launch Addition. Fixel was a former partner and joined in ’06, he closed on some of their most well known investments and certainly pushed their private investing arm to new heights.
Even with his departure they’re seriously moving and closing deals faster than ever before. They even just closed their largest venture fund to date. They sent a letter to its investors back in January saying it was raising $3.75 billion for its thirteenth venture fund (titled XIV, apparently for superstitious reasons), that the new fund just closed with almost twice that amount: $6.65 billion.
So if you were curious how they were making massive investments, the $6.65b fund is the answer. Some of their biggest wins to date have included a $200 million bet on the e-commerce giant JD.com that produced $5 billion for the firm. According to the WSJ, it also cleared more than $1 billion on the Chinese online-services platform Meituan, which went public in 2018.
They’ve closed nearly 30 investments just in the month of April. Names like ScaleAI and Clubhouse are in there amidst a host of other big names. They did 60 tech deals in Q1 which averages out to 4+ a week.
There’s a few things behind the recent tech success:
- 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.
They’re not only investing in U.S. based companies, they’re moving at light speeds in the India market as well. They’re either finalized or are in late stages of concluding more than 25 deals with Indian startups this year. About 10 of those investments have been unveiled so far while the rest, ranging from $10 million dollars to over $100 million, are in the pipeline for the coming weeks and months.
They’ve invested in Infra.Market and Innovaccer, two other Indian startups that turned unicorn earlier this year. (India has delivered 10 unicorns this year already, compared to 11 last year and six in 2019; Tiger is an investor in over 20 of 47 Indian unicorns.)
And they’re currently in advanced stages to back epharmacy firm PharmEasy, which also turned into a unicorn last week, fintech firm ClearTax (at possibly $1 billion valuation), crypto exchange CoinSwitch, insurer Plum, B2B marketplace Moglix (at over $1 billion valuation), social firms Kutumb and Koo (at over $100 million valuation), healthtech firm Pristyn Care, and B2B e-commerce Bzaar, and agritech Reshamandi.
They’re not new to India born startups, their investment in Flipkart in 2009 and Ola in 2012 showed the level of risk-appetite the U.S. firm was prepared to operate with in India, at a time when both the firms were struggling to raise money from some of the top Indian investors.
Lee was instrumental in getting their investment flow started in regards to India and that has slowed dramatically since his departure. Tiger now primarily writes large checks, at late stages, for very attractive and well known SaaS businesses.
With all of this being said the sky is really the limit. Funding has dramatically picked up from the lag in mid-2020. Term sheets will continue to fly out the door at Tiger and I’m sure headlining investments will continue to hit the press.