Tiger Global: How to Win | The Generalist

Tiger Global is venture capital's winning machine.

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Marcelino Pantoja founder-in-residence
2 months ago

Founder-in-Residence @ Platform Venture Studio

Technically, Tiger Global is creating the first-ever private tech index fund. But with premium fees and economics.

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"As we mentioned above, Tiger's current approach is to invest in the top decile of tech startups. If the tech sector continues to grow and the fund picks reasonably well, Tiger's returns should be strong — but it's less likely to drive the radically anomalous performance that traditional venture funds are seeking.

Classic VCs are often looking to clear a 30% internal rate of return (IRR) on investments; Tiger is likely hoping for something closer to 20%. A prospectus for Tiger XV, an upcoming $10 billion vehicle shared by a private source, revealed that the fund is outperforming this threshold. IRR across 14 private entities is 34% gross and 27% net of fees.

In essence, traditional venture capitalists are looking to get the best return possible within a specific time frame. Meanwhile, Tiger is looking to put as much money to work as possible at a reasonable IRR."

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The things you can do when you combine speed with a lower cost of capital:

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