Tiger Global's Venture Fund Crumbles: Paper Losses Reach 18%, Markdowns Shock Investors

Tiger Global Management's largest venture fund has reportedly incurred an 18% loss in paper value as of the end of September.

This decline comes after the firm reduced the valuations of several portfolio companies, Bloomberg reported, citing sources.

The fund, dubbed the Private Investment Partners 15 (PIP 15), was valued at nearly $13 billion. It saw significant markdowns, including a 45% reduction in the valuation of artificial intelligence (AI) firm Superhuman and a 72% cut for DuckDuckGo, a privacy-focused search engine platform.

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Further markdowns were made in Tiger Global's investments in the Bored Ape Yacht Club, a series of non-fungible tokens (NFTs), by 69%, and in the NFT marketplace OpenSea by 94%.

These figures represent the extent of valuation reductions since Tiger Global's initial investments in these entities.

Tiger Global oversees approximately $50 billion in assets.

The venture capital sector is currently navigating a challenging period, with startups grappling with financial constraints amid rising interest rates.

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Similar to Tiger Global, Philippe Laffont's Coatue Management also significantly lowered its valuation of OpenSea by 90% and adjusted its stakes in other companies like Calendly and Notion, according to an earlier report.

Additionally, Tiger Global informed its investors last week about a major leadership change. Scott Shleifer, the head of the venture capital division, will be stepping down from his position to become a senior advisor from Jan. 1, while continuing as a partner.

Based in New York, Tiger Global mentioned that Shleifer's decision was influenced by his desire to stay in Florida with his family.

Last year, Tiger Global made significant cuts in its venture funds' valuations, amounting to about 33%, leading to a $23 billion drop in value.

The PIP 15 fund had its final closure in early last year.

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