Tiger Global Management, a leading tech investor, is facing significant losses due to its investments in blue-chip crypto businesses.
According to reports, the company informed investors that its $12.7 billion venture fund had suffered a 20% loss as of December 2021, largely due to losses from half a dozen major crypto startups. This includes a complete wipeout of its investment in FTX, which collapsed in November.
Tiger Global’s investments in NFT marketplace OpenSea, Bored Ape Yacht Club creator Yuga Labs, payments firm MoonPay, decentralized wireless network startup Helium, and Sam Altman’s Worldcoin have also been marked down, causing significant losses for the company.
Investors in OpenSea, in particular, have seen a steep decline in the value of their investment, with shares trading at a 51% discount on Birel.io, a secondary marketplace.
Tiger Global’s losses are part of a larger trend in the tech sector, with shares in prized crypto companies dropping significantly in value.
Tiger Global, which has invested over $11 billion through its venture fund, has suffered sustained losses in recent years, with its flagship hedge fund reporting losses of 54.7% in 2022.
Despite being one of the biggest investors in the tech sector, Tiger Global has struggled to maintain its position, with the value of its private funds dropping by an average of 33% in 2022.
Tiger’s venture fund has invested heavily in enterprise software as a service, with fintech and crypto being its second and third biggest investment categories.
While it has backed over 250 startups, more than 170 were worth less in December 2021 than when the company first invested. This suggests that the value of crypto price tags is falling in line with the wider tech startup space.