Nov 5, 2021 - Economy
Tiger Global-style VC investors are on the prowl

- Kia Kokalitcheva, author ofAxios Pro Rata


In the venture capital world, nontraditional, index-like investors such as Tiger Global Management and Insight Partners have made headlines for their aggressive investing into startups — and new data shows just how much faster they’ve been deploying capital.
The big picture: These investors' playbook involves funding as many startups as possible and hoping for the best, as opposed to the traditional method of a more concentrated portfolio and deep diligence.
Zoom in: This group's capital deployment was pretty much on par with the most active traditional VCs in late 2020. But starting at the beginning of this year, they really picked up their pace, as the latter group decelerated, a new report from Silicon Valley Bank shows.
- This has been in part aided by their fundraising — Tiger, for example, began pre-marketing a new $10 billion fund back in May, just a month after closing a $6.7 billion fund.
- SoftBank, meanwhile, shifted its Vision Fund strategy to be more diversified and index-like in its second fund.