If you watch funding bulletins as we do, you could have seen one thing this 12 months. There are rather a lot of mega-rounds coming collectively, and Tiger Global is concerned in a notable quantity of them, typically as the spherical’s co-lead.
Just this week alone, half a dozen firms have introduced rounds that the New York-based investing big has led, co-led, or written follow-on checks into, together with HighRadius, an organization whose $300 million Series C spherical it co-led with D1 Capital; Cityblock Health, whose $192 million in prolonged Series C funding Tiger Global led; and 6sense, which acquired a follow-on examine from Tiger Global as half of a $125 million Series D spherical. The agency can also be reportedly reportedly in talks to co-lead a $300 million spherical in a five-year-old, AI chipmaker known as Groq.
If you’re questioning the place all that cash is coming from, surprise now not. Though Tiger Global despatched a letter to its traders again in January, saying was elevating $3.75 billion for its thirteenth venture fund (titled XIV, apparently for superstitious causes), a brand new SEC submitting exhibits that new fund just closed with nearly twice that quantity: $6.65 billion.
That’s rather a lot of billions, even on this market, and particularly for Tiger Global, which closed its twelfth fund with $3.75 billion in capital commitments solely final 12 months.
We’ve reached out to the agency to study extra, however as we famous again in January, once we caught wind of its fundraising plans, Tiger Global seemingly had a robust case to current potential restricted companions.
Among its most up-to-date causes to rejoice, portfolio firm Stripe is now valued at $95 billion, following closing a $600 million spherical earlier this month. Tiger Global additionally owned 10% of the gaming firm Roblox forward of direct itemizing that it staged earlier this month to grow to be a publicly traded outfit. The firm’s market cap is presently $38 billion.
In 2020, quite a few of its portfolio firms additionally both went public or had been acquired, together with Yatsen Holding, the almost five-year-old dad or mum firm of China-based cosmetics big Perfect Diary; the cloud-based information warehousing outfit Snowflake; and Root insurance coverage, a virtually six-year-old, Columbus, Ohio-based insurance coverage firm.
As for M&A, Tiger Global noticed at the least three of its firms swallowed by larger tech firms final 12 months, together with Postmates’s all-stock sale to Uber for $2.65 billion; Credit Karma’s $7 billion sale in money and inventory to Intuit; and the sale of Kustomer, which targeted on customer support platforms and chatbots, for $1 billion to Facebook.
Tiger Global, whose roots are in hedge fund administration, launched its personal fairness enterprise in 2003, spearheaded by Chase Coleman, who’d beforehand labored for hedge-fund pioneer Julian Robertson at Tiger Management; and Scott Shleifer, who joined the agency in 2002 after spending three years with the Blackstone Group. Lee Fixel, who would grow to be a key contributor in the enterprise, joined in 2006.
Shleifer targeted on China, Fixel targeted on India and the relaxation of the agency’s assist crew (it now has 22 investing professionals on employees) helped discover offers in Brazil and Russia earlier than starting to focus extra aggressively on alternatives in the U.S.
Every investing choice was ultimately made by every of the three. Fixel left in 2019 to launch his personal funding agency, Addition. Now Shleifer and Coleman are the agency’s sole decision-makers.
Tiger Global’s traders embody a mixture of sovereign wealth funds, foundations, endowments, pensions and its personal staff, who’re collectively believed to be the agency’s biggest traders at this level.
Some of Tiger Global’s biggest wins to this point have included a $200 million wager on the e-commerce big JD.com that produced a $5 billion for the agency. According to the WSJ, it additionally cleared greater than $1 billion on the Chinese online-services platform Meituan, which went public in 2018.
The agency additionally reaped an enormous windfall by means of its funding in the linked health firm Peloton, 20% of which the agency owned at the time of Peloton’s 2019 IPO.