Tech investor Tiger Global Management has reportedly slashed the value of its private funds by nearly 25% this year, leading to one of the industry’s largest-ever declines in assets at $42 billion.
That’s according to a recent report by Bloomberg News, which says that Stripe, Instacart, and the bankrupt crypto exchange FTX are among the companies marked down by Tiger Global, one of the largest tech investors in the world.
Meanwhile, some of the companies held by Tiger Global’s venture unit that had been private but have since gone public lost value, sources told Bloomberg.
The unit oversaw around $43 billion as of the end of September, falling from $65 billion at year-end. Assets in the firm’s public investment operation shrank from $35 billion to $15 billion the sources said. Tiger Global was not immediately available for comment.
The news comes weeks after reports that Tiger Global had slashed the value of its private stock in tech firms such as non-fungible token (NFT) marketplace OpenSea following a drop in the value of its investments in public stocks. The company invested at least $19 billion in private tech companies in the last 18 months when startups were at their peaks.
PYMNTS wrote last week that Tiger Global was among the major players in the venture capital world to invest in FTX and its celebrity founder Sam Bankman-Fried.
“Perhaps the biggest question the so-called ‘smart money’ VCs and others will face following FTX’s combustion is why, with all their sophistication and investment prowess, didn’t they ask more questions themselves and foresee this before it was too late?” we wrote.
The fact that FTX was able to collect $2 billion from some of the venture capital world’s sharpest financial minds, PYMNTS noted, “will forever be an asterisk on their accolades.”
While FTX’s own lack of internal controls has been well-documented, we were left with this question: “Where were the appropriate due diligence stopgaps and guardrails supporting its investors’ own processes?”
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