According to Bloomberg, Tiger Global Management, a well-known venture capital firm managing $50 billion in assets, significantly reduced the valuations of several portfolio companies after the end of the third quarter this year, resulting in investors in its largest venture capital fund, Private Investment Partners 15 fund, facing approximately an 18% loss by the end of September.
Sources revealed that in addition to lowering the valuation of AI-driven email company Superhuman by 45% and reducing the valuation of privacy search engine DuckDuckGo by 72%, Tiger Global also decreased its stake in Bored Ape Yacht Club (referred to as BAYC in the report, but likely indicating Yuga Labs) by 69%, and reduced the valuation of NFT marketplace OpenSea by 94%. These figures represent the total reduction in valuations by Tiger Global since its initial investments in these companies.
After becoming one of the main investors in the tech industry, Tiger Global’s investments in the cryptocurrency sector have led to significant losses. According to a report by The Information in April this year, Tiger Global’s $12.7 billion venture capital fund launched at the end of 2021 generated a 20% loss by December last year. Most of the losses came from six cryptocurrency startups: FTX, OpenSea, Yuga Labs, MoonPay, Helium, and Worldcoin.