Mutiny ai series tiger global insight9/11/2023 ![]() ![]() Series A valuations have dropped maybe 20-30% but likely should drop 50%+ from highs,” wrote Elad Gil, a prolific early-stage investor, in a recent blog post. Some companies have been getting high valuations over the last few months while others can not fundraise at all. For example, series B/Cs have dropped 30-70% but the repricing is inconsistent. “We are in a ‘sliding knife’ market and things have only partially propagated into earlier and earlier companies. The tightening of valuations has additionally trickled down to startups across each stage, including those at seed and Series A phases of life, according to several investors with whom TechCrunch spoke. Some investors - including reportedly Coatue - have cautioned that tech stocks may fall further and more painful days could be ahead for startups. (Some of the deals announced in the previous quarter were agreed upon and finalized as early as January, hence the Q2 figures don’t accurately reflect the deal-activity of the quarter, many investors said.) ![]() Indian startups raised $6.9 billion in the quarter that ended in June, down from $10.3 billion during the period between January and March this year, according to insight platform Tracxn. Investors across the globe have become more selective in recent months and have slashed valuations of private firms across many tech sectors worldwide, including emerging markets. investor last year, according to PitchBook. Still, Tiger Global’s move is significant because it wrote more checks than any other U.S. ![]() The slowdown on new investments comes as investors globally sound alarms and hit the brakes on making large backings as they scramble to assess the rout in the stock market that has sharply reversed much of the gains of the 13-year bull run. ![]() TechCrunch reported in May that Tiger had nearly depleted its current fund, and in the same month, journalist Eric Newcomer reported that Tiger was looking to raise a $1 billion crossover fund.Ĭook told founders that it was still a little early to say how much capital Tiger Global will be able to accumulate for its larger fund, the sources added, requesting anonymity as the conversations were private. But by May of this year, it had lost two-thirds of all the gains it made in the stock funds since its founding in 2001, according to multiple reports. The firm, which manages over $20 billion, benefitted from the rise of share prices of tech companies such as Zoom during the pandemic. The firm is also on track to raise a new fund later this year, Cook said, according to the sources. Cook also assured that Tiger Global is sitting on dry powder in “billions” and will continue to back “best internet-enabled” startups, the sources said. The New York-headquartered firm - which invested in 361 deals in 2021, according to PitchBook - is evaluating the market conditions and plans to limit the number of new checks it writes til December, Tiger Global partner Alex Cook told founders recently, according to sources familiar with those conversations.Ĭook met several founders during his visit to Bengaluru earlier this month, offering advice and assuaging market concerns about the firm’s recent performance. Tiger Global, one of the biggest winners from the technology bull market, plans to decelerate the pace of its investments in startups for two quarters, the latest in a series of high-profile investors becoming cautious as the market embraces a downturn. ![]()
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