New York-based investment firm Tiger Global Management, focusing on private equity and public equity, is seeking USD 10bln for a record tech venture fund. In the first four months of 2021 alone, Tiger Global has participated in 100 investment rounds and raised USD 22.2bln for private tech companies. Just a few weeks ago, Tiger Global raised USD 6.7bln in funding for its venture capital fund, despite targeting only USD 3.8bln. Such tremendous deal-making acceleration illustrates the extent to which private tech companies are booming.
Tiger Global's unique selling proposition in financing is that they are moving faster and are offering higher prices than their competitors. The major tech start-up deals were Brex, a corporate credit card start-up, ShareChat, an Indian social media company, and Getir, a Turkish instant grocery delivery app. Tiger Global's new fund would be the largest by an independent fund manager dedicated to minority investments in tech start-ups.
Several VCs tried to create billion-dollar tech funds to compete with fewer risky institutional investments. For instance, Tiger Global's hedge fund return is 21 %, while the VC's return is 26 % over the last two decades.
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