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Tiger Global Management announced Monday the launch of its latest venture‑capital vehicle, Private Investment Partners 17 (PIP 17), according to a letter to investors obtained by CNBC.
The firm is targeting a $2.2 billion capital raise for the fund, a figure corroborated by a source familiar with Tiger’s strategy who asked to remain anonymous.
Tiger says PIP 17 will be “similar in strategy, size and construction” to its earlier vintages, particularly PIP 16. The predecessor aimed for $6 billion but ultimately closed at $2.2 billion.
The two largest holdings in PIP 16 are OpenAI and Waymo—positions that have helped lift the fund’s performance. Tiger reported that PIP 16 is up 33 percent year‑to‑date, while its predecessor, PIP 15, is up 16 percent.
Compared with the megafunds of the early 2020s, the modest target for this raise signals a shift toward a more disciplined capital‑allocation approach.
Over the past half‑decade Tiger was one of the most aggressive players in the startup ecosystem, but recent years have seen steep markdowns and slower deployment.
In 2021, at the height of its “spray‑and‑pray” era, Tiger led 212 rounds, according to Crunchbase data. This year it has made just nine new private‑equity investments.
Tiger’s early bets paid off: it invested in OpenAI in 2021 when the company was valued at under $16 billion, and in Waymo that same year at a $39 billion valuation.
The investor letter and the accompanying call also reveal Tiger’s caution about a potential AI bubble.
“Valuations are elevated, and, in our view, at times unsupported by company fundamentals,” the firm wrote. “We also recognize the importance of approaching a technological shift of this magnitude with humility.”
Founder and CEO Chase Coleman’s strategy is now to prune underperformers aggressively while reinforcing the fund’s biggest winners.
Tiger disclosed that it has exited more than 85 companies from PIP 15, generating over $1 billion in proceeds. The capital from those exits can be redeployed into follow‑on investments for companies it deems winners.
Among the names Tiger plans to concentrate on are Revolut, the digital‑banking challenger, and ByteDance, the parent company of TikTok.
Additional focal points include police‑technology firm Flock Safety, electric‑vehicle developer Harbinger, e‑commerce platform Rokt, freight‑logistics startup Cargomatic, and stable‑coin venture BVNK, according to the fund’s presentation.
Strategic Implications
The downsizing of Tiger’s capital commitments reflects broader market dynamics. Venture‑capital fundraising has cooled dramatically since the pandemic‑driven boom, with limited partners demanding tighter risk controls and clearer paths to liquidity.
By narrowing its net‑new capital to $2.2 billion, Tiger can maintain a more manageable portfolio density, allowing deeper support for late‑stage companies that are capital‑intensive—particularly AI and autonomous‑driving firms where runway requirements remain high.
Technical due‑diligence is also becoming more granular. The fund’s “humility” note hints at a shift toward fundamentals‑based valuations, moving away from growth‑only metrics that dominated the 2021‑2022 funding frenzy.
In practice, this means Tiger is likely to double‑down on proven revenue streams, repeatable unit economics, and defensible moats, while pulling back from speculative bets that lack clear monetization pathways.
For the broader ecosystem, Tiger’s pivot could accelerate the consolidation of capital among a smaller set of deep‑pocketed investors capable of supporting multimillion‑dollar follow‑on rounds. Startups may need to adapt by sharpening their go‑to‑market strategies and demonstrating tangible ROI earlier in their lifecycles to secure funding.
Meanwhile, the AI sector remains a focal point for capital allocation. Despite concerns about overvaluation, the transformative potential of large‑language models, autonomous systems, and generative AI continues to attract strategic capital. Tiger’s measured exposure—maintaining stakes in OpenAI and Waymo while courting next‑generation players—positions it to capture upside while mitigating downside risk.
Overall, Tiger Global’s latest fund launch underscores a maturation phase for venture capital: disciplined sizing, rigorous valuation discipline, and a focus on “winner‑takes‑most” opportunities in high‑impact technology verticals.
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