Not a day goes by without a new European startup announcing a large fundraising round co-led by US hedge fund Tiger Global. Some say it’s a  radical

Tiger Global: what happens when ‘normal’ returns?

submited by
Style Pass
2021-05-26 11:00:05

Not a day goes by without a new European startup announcing a large fundraising round co-led by US hedge fund Tiger Global. Some say it’s a radical change of approach in the venture capital industry , while others suggest that it’s a fad . But how can we explain the rise of Tiger Global in the VC landscape? And what difference will it make from a European perspective?

In truth, it was only a matter of time before hedge fund managers turned their attention to tech startups. By definition, hedge funds (or rather “alternative asset management firms” ) have the most flexible approach to allocating capital across asset classes, and those who manage them are constantly chasing the highest returns possible. Therefore in a world that is becoming more digital by the day, hedge funds had to set their eyes on tech at some point.

The issue with tech startups and tech companies is that relatively few of them are listed. This arguably is a challenge for hedge funds, which are used to making bets on public markets where they enjoy abundant information, a broad range of potential targets and liquidity.

Leave a Comment