Oct 6, 2022 - Economy

Scoop: Tiger Global raising $6 billion for next private tech fund

Illustration of a tiger holding a fan of cash in its paw.

Illustration: Gabriella Turrisi/Axios

Tiger Global is seeking to raise $6 billion for its next fund that invests in privately-held tech companies, according to an investor letter viewed by Axios. A first close is planned for January.

Why it matters: Tiger is targeting less than half of what it raised for its prior fund, reflecting a decrease in startup funding round sizes and valuations.

  • At the same time, $6 billion is nothing to sneeze at, suggesting that Tiger isn't terribly bearish.
  • Existing portfolio companies include TikTok parent ByteDance, Databricks, Stripe, ByteDance and Shein.

By the numbers: Tiger's letter reports that its Private Investment Partners funds have called over $36 billion since inception in 2003, distributed $30 billion and generated a net IRR of 24%.

  • Per Tiger: "The funds have generated positive IRRs in every vintage year of investment and consistently robust distributions, with each of our first 10 funds having returned between 130% and 1,058% of called capital."

Timing: Earlier this week, Tiger informed investors that partner John Curtius is leaving to launch his own VC firm focused on B2B software startups.

Strategy: Tiger says that it has invested most of its existing fund in early-stage enterprise software and fintech companies in the U.S. and India, with average investment sizes falling to $30 million, and that it expects that strategy to persist.

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