November 30, 2022

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Tiger International to chop again on writing checks for the following two quarters

The present financial downturn has seen corporations scramble to remain afloat and survive, resorting to techniques similar to mass layoffs and freezing of recruitments. VCs and traders like Sequoia and Y Combinator have already rung the warning bell and heralded the top of the times when startups may develop at any value, and with any value. Billions are not pouring in to assist startups (although there are some exceptions).

Now, to make issues worse for startups and enhance their woes, prolific funding agency Tiger International has determined to chop down on writing checks for the following two quarters.

Recognized to have backed a number of high-profile names in India similar to Flipkart, Ola, and Delhivery, in addition to unicorns like Groww, Tiger International has been one of many main traders of the earlier 12 months. It invested in a spectacular 361 offers in 2021, particularly through the seed and Sequence A and B rounds, and was a serious a part of the file funding that startups scooped up final 12 months.

In distinction, 2022 is a slightly lackluster 12 months, with unicorns not popping up by the week and funds drying up. Moreover, Tiger International misplaced billions as a result of brutal sell-off of tech shares and plummeting valuations this 12 months – the agency incurred losses of $25 billion until June and was down by 50% this 12 months up to now.

The choice of the New York-headquartered Tiger International to drag again on its investments within the coming months is smart on this context, particularly since issues don’t look to be altering anytime quickly.

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The identical was instructed by Tiger International associate Alex Cook dinner to founders earlier this month. He additionally knowledgeable that the funding firm was seeking to elevate a brand new fund this 12 months. It’s unknown precisely how a lot capital might be raked in for the brand new fund.

At the moment, Cook dinner and Scott Shleifer (Tiger’s international head for personal investments), assured a bunch of its Indian founders that the agency didn’t intend to carry again assist (learn: capital) for follow-on investments for these in its portfolio who carried out the very best.