Tiger Global just announced its new $2.2 billion venture fund, marking a sharp retreat from the megafund era. The firm's latest raise signals a disciplined pivot after years of heavy markdowns, with founder Chase Coleman warning that AI valuations are "elevated and unsupported by fundamentals." The move comes as Tiger's existing fund rebounds 33% this year, powered by early bets on OpenAI and Waymo.
Tiger Global just dropped a bombshell on Monday that's reverberating through Silicon Valley. The hedge fund announced its new venture fund, Private Investment Partners 17, targeting $2.2 billion - a massive comedown from the megafund madness that defined the early 2020s. According to investor letters obtained by CNBC, this marks Tiger's most disciplined approach in years. The firm's previous fund initially targeted $6 billion but closed at just $2.2 billion, and now they're sticking to that more conservative playbook. It's a stunning reversal for a firm that once led 212 investment rounds in a single year. This year? Just nine new private investments. The numbers tell the story of a chastened giant learning to pick its shots carefully. What's driving this newfound discipline isn't just market conditions - it's performance. Tiger's current fund is up 33% year-to-date, with its previous vintage climbing 16%. The secret sauce? Two monster positions that founder Chase Coleman had the foresight to grab early: OpenAI at less than $16 billion in 2021, and Waymo at $39 billion that same year. Both stakes now anchor Tiger's portfolio as AI valuations have exploded. But here's where it gets interesting. In the same breath that Tiger celebrates these wins, Coleman is pumping the brakes hard on AI euphoria. "Valuations are elevated, and, in our view, at times unsupported by company fundamentals," the firm wrote to investors. It's a remarkable admission from one of AI's biggest early backers, and it signals growing concern about bubble territory in the sector. The strategy going forward is ruthlessly simple: prune the losers, double down on winners. Tiger has already sold more than 85 companies from its previous fund, generating over $1 billion in proceeds. That war chest is now getting recycled into follow-on investments in what Coleman considers the cream of the crop. The concentration play is already taking shape. Beyond OpenAI and Waymo, Tiger is focusing on , the digital banking unicorn, and ByteDance, TikTok's parent company. Other portfolio darlings include police tech startup , EV company Harbinger, and stablecoin startup BVNK. The shift represents more than just risk management - it's a fundamental rethink of venture capital in an era where easy money has dried up. Tiger's "spray and pray" approach of the pandemic era, when it was writing checks to seemingly every hot startup, has given way to something more surgical. The firm is betting that concentrated positions in proven winners will outperform the shotgun approach that defined 2021's frothy markets. What makes this particularly notable is Tiger's influence on the broader ecosystem. When one of venture capital's most aggressive players starts preaching discipline, it sends ripples throughout the industry. Other firms are likely watching closely to see if Tiger's new approach pays off, especially as AI companies command increasingly astronomical valuations despite uncertain paths to profitability. The timing couldn't be more critical. As and autonomous vehicle companies like Waymo continue burning cash while scaling, Tiger's early positions look prescient. But the firm's own warnings about unsupported fundamentals suggest even they think the party might be getting out of hand.
