Hanging onto the tiger’s tail
“Hanging onto the tiger’s tail” – a cartoon that illustrates the impact that Tiger Global Management and other massively funded growth stage VC funds (e.g. SoftBank, Coatue) are impacting the traditional world of Silicon Valley venture capital.
Tiger Global is bringing faster deal-making and larger early-stage investment amounts, and now has a portfolio of over 400 companies.
Traditional VCs are concerned about the impact this faster investing approach has on due diligence, portfolio management support, and the potential danger of valuation overhang.
However, we should expect this trend to continue – Tiger Global is now raising a $10BN fund and shared with investors in February 2021 that it is “searching for ways to make our investment flywheel spin faster.”
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