3 months ago 1 min read

Tiger Global Breaks its Promise to Invest $1 billion in a New Venture Capital Firm

tiger global-ftx

Tiger Global breaks its pledge to support VC firms. The funding was previously committed to be $1 billion, but due to the market's decline, investments were scaled back or abandoned.

Tiger Global Management executives contributed $1 billion of their cash to support dozens of venture funds that fund the newest businesses a year ago. It's a potent new strategy to provide the hedge fund more access to promising businesses. However, investors declared that they would cut back on their prior investments as the economic climate in the startup market deteriorated.

The partners of Tiger Global gave the VCs many excuses to withdraw from their investment commitments, including deteriorating economic conditions and the need for additional due diligence. Three of those people claimed that Tiger personnel frequently referenced limited partners' or supporters' complaints as a justification.

A manager of a venture capital fund claimed that Tiger Global gave him a verbal commitment but that he was unable to get in touch with his partners for the following four months, thus the company eventually decided not to invest.

Additionally, according to Forbes, Tiger Global reneged on its agreement to contribute to Banana Capital, an early-stage venture capital firm. It was previously disclosed that Tiger Global, with the assistance of Bain and other businesses, spent $38 million in FTX as a result of due diligence, and the company deducted this investment.

While paying Bain more than $100 million annually to conduct private company research, Tiger Global has suddenly decreased its $38 million holding in FTX to zero. A firm spokeswoman declined to comment, and a request for comment was not immediately answered by Bain Capital. The business now plans to raise $6 billion for its upcoming venture fund.

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