Tiger Global pursues secondary sale of startup stakes to return capital

Tiger Global’s $12.7 billion venture fund, launched late 2021, showed roughly a 20 % paper loss by December 2022, with notable writedowns on FTX, ByteDance and OpenSea. Deal flow fell sharply to only 15 investments in 2023 compared with 245 in the first half of 2022.

In response, the firm engaged an adviser to conduct a secondary sale of selected startup stakes. The transaction returns capital to limited partners, reduces exposure to under‑performing assets and aligns the fund’s size with the current $5 billion fundraising target.

Returned capital to investors via secondary sale of startup stakes, mitigating losses from writedowns and adjusting fund size toward a $5 billion target.

Mark‑to‑market losses on high‑profile investments eroded fund performance and limited partner confidence.

The venture slowdown reduced new deal opportunities, making capital recycling through secondary sales attractive.

Returning capital via secondary sale allows the firm to reset fund size and focus on higher‑conviction investments.

In downturns, venture firms can use secondary sales to provide liquidity to limited partners while rebalancing fund exposure.

The secondary sale proceeds were distributed to limited partners, helping to mitigate losses and reset the fund’s scale. Tiger Global continued to pursue a more selective investment approach, preserving relationships while positioning itself for future fundraising once market conditions improve.