According to Bloomberg , after previously lowering its investment valuation of FTX to 0, Tiger Global Management, one of the world's largest private equity funds, is currently facing a book loss of 18%, mainly because it once again invested in bull stocks. The investment has undergone a new round of valuation reduction and recognition.
Many investments have admitted losses. Is Tiger Global a leek?
Tiger Global Management's PIP15 fund, which completed its last round of fundraising last year and has a scale of US$13 billion, has invested in the AI technology email company Superhuman and has had its valuation reduced by 45%, while the privacy search engine platform DuckDuckGo's Valuation was also slashed by 72%.
Tiger Global also reduced the valuation of its investment position in Bored Ape Yacht Club (BAYC) by 69%. According to data from Opensea, the average coin-based transaction price of this NFT series has dropped by 58% in the past year, while according to data from Coinmarketcap, the price of $ETH has increased by 63% in the past year.
Investment in the NFT circle admits huge losses: BAYC suffers heavy losses and is bearish on OpenSea investment
Tiger Global Management’s investments in NFTs also underperformed. In U.S. dollar terms, BAYC's decline over the past year was 32%, and Tiger Global has undergone a more substantial valuation reduction. It shows that Tiger Global may have entered the market at the height of the NFT craze.
Tiger Global's investment in the NFT trading platform OpenSea has also lowered its valuation, a significant reduction of 94%, leaving almost only 1/20 of the original value, reflecting the current desertedness of the NFT market.
Venture capital industry faces challenges
Since the Federal Reserve raised interest rates for the first time in March 2022, new startups have struggled to survive amid rising interest rates and difficulty in financing.
The reduction of hot money in the market also has an impact on high-risk asset-related businesses. At the same time, the venture capital industry is undergoing a new round of self-examination. For example, Coatue Management, led by Philippe Laffont, also made a 90% valuation adjustment for OpenSea, and made varying degrees of valuation cuts for Calendly and Notion.
Looking for war criminals? Tiger Global has frequent personnel changes
On November 21, 2021, Tiger Global announced that Scott Shleifer, head of its venture capital division, will transition to senior advisor while continuing to serve as a partner. Tiger Global stated that this decision was based on family factors. However, the timing of this personnel change has attracted attention and speculation from the outside world.
Last year, Tiger Global cut the valuation of its venture funds by about 33%, bringing the total size to $23 billion. The company, which manages $50 billion in assets, declined to comment on the Bloomberg report.