Tiger Global is planning a cautious future for the project with a new $2.2 billion fund

Tiger Global, the investor that fueled the 2020-2021 venture capital bull market, is reportedly raising a new $2.2 billion fund.

The company sent a letter to potential limited partners, according to A.J Copy obtained by CNBCis seeking to raise funds to purchase a vehicle called Private Investment Partners 17 (PIP 17). The letter also promises a more modest approach than during 2021’s bull market madness.

During that period, Tiger Global was moving quickly and investing heavily, a method the venture industry calls “spray and pray.”

PIP 15, raised in 2021, was a $12.7 billion mega fund that pumped money into startups at a pace that was largely astonishing at peak valuations, TechCrunch reported.

In 2021 alone, he backed the hedge fund 315 startup companiesaccording to PitchBook data, and led to bidding wars between venture capital firms for stakes even in unproven startups that had increased valuations.

When interest rates rose, The party’s over, and startups have spent years They are trying to live up to their ratings for 2021, Many closures along the way.

After the venture market collapsed in 2022-2023, John Curtius, the prolific investor at Tiger Global He left to start his own fundScott Schleifer, head of private equity investments at the company, It transitioned into a consulting rolewhile Tiger’s famous founder, Chase Coleman, took on a more direct role.

Tiger Global went on to raise a much smaller PIP 16 fund of $2.2 billion in 2024, Bloomberg reported At that time, that was still a huge box.

Now, building on the strength of PIP 16’s blockbuster AI investments, Tiger Global is raising Fund 17. PIP 16 owns stakes in OpenAI, Waymo, and Databricks, all of which have achieved sky-high valuations and boosted that fund’s paper gains by 33% year to date, CNBC reported.

However, in a nod to the need for greater caution compared to previous years, the letter promised a more targeted approach. She acknowledged that leaning into AI investments can be risky and requires “humility” because “valuations are high and, in our view, sometimes not supported by company fundamentals,” according to CNBC. (Tiger Global could not immediately be reached for comment.)

In other words, even when Tiger Global raises a new fund to pursue more large AI opportunities, it means the AI ​​market is in a bubble, and does not want to push valuations to higher, perhaps unrealistic, heights.