Tiger Global Looks to Raise $6B for New Fund to Invest in Startups

Hedge fund Tiger Global is looking to raise $6 billion in a new fund, even as investors shy away from venture backing.

The $6 billion figure is less than half of New York-based Tiger’s previous fund and less than the $8 billion that clients had originally been told the company would target, according to published reports Thursday (Oct. 6).

The new fund, known as Private Investment Partners Fund 16 (PIP 16), will invest in startups, “largely in enterprise themes and in India” as well as “in a lower-valuation environment,” Tiger Global reportedly said in a letter to investors Thursday.

Tiger Global declined to comment Thursday afternoon.

See also: FinTech Startups Endure ‘Down Rounds’ as VC Money Dries Up

PIP 16 will focus on internet-enabled enterprise software, FinTech and consumer companies because they’re “underpenetrated categories” with potential for rapid and long-term growth, the letter stated, per reports.

In addition, the fund will make “opportunistic follow-on investments” in Tiger Global’s existing lineup of global portfolio companies, including through secondary share purchases.

Employees will contribute at least $500 million, with most coming from Founder Chase Coleman and firm partner Scott Shleifer, Bloomberg reported Thursday, citing unnamed sources.

This has been a tumultuous year for Tiger Global, with 2022’s tech stock sell-off reportedly costing the firm around $17 billion.

Read more: Tiger Global Faces ‘Breathtaking’ $17B Loss, Expert Says

That drop meant Tiger Global — one of the largest hedge funds in the world — saw around two-thirds of the gains it had built up since its founding in 2001 wiped out in four months.

“The magnitude of the loss is breathtaking, especially for a fund with ‘hedge’ in its name,” Andrew Beer, managing member at investment firm Dynamic Beta, said at the time. “This shows how even the most talented and plugged-in tech investors failed to see the train coming down the tracks.”