If Tiger Global shows up, will there be new stripes in early-stage?
Mar 16, 2022
Dive into the intriguing shift of Tiger Global as it moves from late-stage to early-stage investments. The hosts discuss how this transition mirrors broader changes in the capital markets. They unpack the evolving venture capital landscape, highlighting differences between major players like Tiger and SoftBank. A unique perspective shows how hiring velocity can predict startup success. Addressing the competition in early-stage funding, they analyze the implications for new managers and the startup ecosystem.
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question_answer ANECDOTE
Andreessen Horowitz's Early Aggressiveness
Andreessen Horowitz's $1.5B fund was initially questioned due to the market conditions at the time.
Their aggressive strategy, offering better terms than any other firm, secured them access to numerous deals.
insights INSIGHT
SoftBank's Vision Fund 1 Impact
SoftBank's Vision Fund 1, a $100B fund, dwarfed previous venture capital funds and targeted non-traditional companies.
Their aggressive investments and high valuations garnered attention and sparked discussions about their strategy.
question_answer ANECDOTE
Tiger Global's Due Diligence
Tiger Global, despite its fast pace, incorporated due diligence by deeply vetting companies and their networks.
This approach contrasted with SoftBank's Vision Fund 1, which focused more on visionary founders.
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This is our Wednesday show, where we niche down to a single topic, think about a question and unpack the rest. This week, Natasha and Alex asked: Will Tiger's second act live up to its first?
The question comes after Natasha's latest Startups Weekly column, where she looked into one example of how Tiger Global's stamp of approval is coming for the early stage. Today's conversation is a continuation of that topic, but broadened with examples, context, and of course, some jokes as well.
Before digging into the question, we walked through some historical venture shakeups, looking specifically at Andreessen Horowitz, SoftBank and ultimately Tiger Global's own jolt to the startup ecosystem. Remember when we weren't numb to mega-funds, and due diligence was contrarian?
There's also a conversation to be had about how Tiger's late-stage playbook scales to the early-stage, which made us talk about due diligence, ownership, and fund structures.
And speaking of evergreen funds, here's an evergreen reminder to take advantage of code “EQUITY” when subscribing to TechCrunch+ for a hefty discount, and gratitude from your favorite trio of tech nerds.
We somehow fit YC in too, because why not.
All told the 2022 venture capital market is shaping up to be a very different beast than what we saw in 2021, and not only because Tiger is changing up its own posture. What we saw last year might prove a high-water mark for venture for a long time to come. So, stay tuned.
Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.
Equity