Crypto News- In a recent report on December 1, Tiger Global Management, a prominent American investment firm, faced a notable 18% notional loss at the end of September. This downturn followed the firm’s strategic move to reduce valuations across multiple companies in its portfolio. Private Investment Partners (PIP) 15, valued at almost $13 billion, also saw reductions, with AI-powered email company Superhuman facing a 45% devaluation, and privacy-centric search engine DuckDuckGo marked down by 72%, according to undisclosed sources.
OpenSea Valuation Plunges, Leading to Substantial Losses for Tiger Global
The investment giant took a hit in its portfolio, marking down Bored Ape Yacht Club, an NFT collection, by 69%, and slashing its stakes in NFT marketplace OpenSea by a staggering 94%, as reported by Bloomberg. This data unveils a consistent reduction in Tiger Global’s valuations since its initial investments in these ventures. Interestingly, a key member of the firm, overseeing a management portfolio of $50 billion, opted not to provide comments on these developments.
This comes amid a broader reckoning in the venture capital industry, with startups grappling with cash flow challenges amidst rising interest rates. Coatue Management, led by Philippe Laffont, followed suit by reducing its internal valuation for OpenSea by 90%, along with devaluing holdings in Calendly and Notion.
Tiger Global, known for its focus on global Internet, software, consumer, and financial technology sectors, recently announced a change in leadership. Scott Shleifer, the head of the firm, is stepping down from his role, transitioning to a senior advisory position from January 1. Despite this shift, Shleifer will remain a partner, citing a desire to be closer to his family in Florida as the reason for the change.
Last year, Tiger Global took a significant hit, reducing valuations in its venture funds by approximately 33%, resulting in a substantial $23 billion decline in overall value. The PIP 15 fund concluded its final close early last year. The dynamic shifts in valuations underscore the challenges faced by major investment firms in navigating the evolving landscape of startups and technology ventures.
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