Source: Tiger Global told investors earlier this month that it will no longer focus on large, late-stage startups preparing to go public
Responding to a steep sell-off in technology stocks, some hedge funds and other investment firms with large public stock portfolios have been turning away … Tweets: @lesamitchell , @amir , and @jessicalessin Tweets: Lesa Mitchell / @lesamitchell : Well there you go. We are all back to the top of funnel https://twitter.com/... Amir Efrati / @amir : New: Tiger, D1, other hedge funds moving away from late stage private-tech deals because now they seem a lot more expensive than they used to...@berber_jin1 https://www.theinformation.com/ ... Jessica Lessin / @jessicalessin : Wow. The crossovers say they aren't crossing over. “Tiger Global Management told its investors in a webinar earlier this month that it would no longer focus on backing large, late-stage startups preparing to go public.” https://www.theinformation.com/ ... @berber_jin1
Context & Ripple Effects
Tiger Global’s pullback breaks with the deal velocity later documented in its 2021 startup investing: the firm made 361 deals that year before the market turn erased gains. The reported change redirects its attention away from companies closest to an IPO at the point public-tech valuations are falling.
Related coverage shows the retreat became part of a broader reset: Tiger later slowed startup investing for two quarters, while partners committed capital to early-stage funds. The significance is not simply fewer deals, but a changed preference for where in the startup lifecycle Tiger deploys capital.
First-order effects
- Large late-stage startups preparing to go public lose Tiger Global as a focused prospective backer, narrowing a major source of crossover-style private financing.
- Tiger Global shifts its investment emphasis away from the late-stage companies whose private valuations were most directly exposed to the public-stock sell-off.
Second-order effects
- Other hedge funds and investment firms with large public-stock portfolios, already described as moving away from late-stage private-tech deals, face the same valuation mismatch and reduce competitive pressure for those rounds.
- Startups seeking pre-IPO capital must rely more heavily on investors willing to underwrite private valuations independently of public-market comparables, while early-stage funds gain relevance in Tiger’s allocation mix.
Third-order effects
- If this allocation shift persists, late-stage private funding becomes less anchored to crossover investors and more dependent on specialized venture capital, making the path from private rounds to an IPO less continuous.
- Tiger’s later reduction of its fund target and portfolio markdowns are consistent with a broader venture-capital reset in which fund size and investment pace adjust to repriced private assets.
The trend: The crossover-investor model is retreating from pre-IPO startup financing as public-market repricing feeds back into private-company valuations.