Tiger Global Management, which started the year with a wave of technology investment, wants to create another huge pool of capital for start-ups by raising a $ 10 billion fund from investors.
So far in 2021, Tiger Global has participated in 100 investment rounds in just over 120 days that have raised a total of $ 22.2 billion for private tech companies, according to PitchBook data. .
Its latest venture capital fund comes just weeks after Tiger Global raised what eventually became a $ 6.7 billion fund, after initially seeking $ 3.8 billion. In a recent call, he told investors he would start looking for capital for his next fund, people briefed on the call said.
The relentless pace of the company’s deal making mirrors the boom in private tech companies, with venture capitalists claiming Tiger Global has won first place in some financings by growing faster and offering higher prices than its competitors.
Some of his biggest bets included Brex, the corporate credit card startup, ShareChat, the Indian social media company, and Getir, Turkey’s instant grocery delivery app.
“The opportunity in the public and private markets in our core areas of consumer, business and fintech interest in the United States, China and India is very large relative to the amount of capital we manage and evolve at an often difficult pace. understand, ”Tiger Global wrote in a letter to investors in February.
Investors invested a record $ 69 billion in start-ups around the world in the first quarter, according to PitchBook data, encouraged by a series of acquisitions and public offerings that paid out large dividends to early investors.
Tiger Global’s new fund would be the largest raised by an independent fund manager for minority investments in tech start-ups, according to PitchBook. The company declined to comment on the fundraiser.
Several other companies have sought to raise multibillion-dollar tech funds in recent years, as low interest rates push sovereign wealth funds and other institutional investors into riskier assets.
SoftBank, the Japanese conglomerate, has raised $ 100 billion for its first Vision Fund focused on technology investments, with about a quarter of that total coming from SoftBank itself.
Insight Partners, a venture capital and private equity firm, is seeking $ 12 billion for the new fund in its flagship strategy this year, according to a person familiar with the plans. Unlike Tiger Global, Insight also invests in buyouts that give the company a controlling stake in the companies.
Tiger Global’s private equity funds distributed $ 2.2 billion last year, after fees, according to a letter to investors. Distributions came mostly from acquisitions, such as Uber’s $ 4.4 billion purchase of delivery startup Postmates and Intuit’s $ 8.2 billion deal for the fintech company. Credit Karma, said Tiger Global.
Private equity funds returned 26% per year after fees from 2004 to 2020, according to a letter to investors. This compares to an annual return of 21% of Tiger Global’s hedge funds over the past two decades.