Tiger Global Slashes Bored Ape Yacht Club and OpenSea NFT Values by 69% and 94%: FTX Investment Writes Down to Zero
Tiger Global Management, a powerhouse in the investment realm, revealed a substantial 18% paper loss for its largest venture fund. This loss stems from a significant devaluation of multiple key portfolio companies, painting a stark picture of the challenges faced by startups in today’s economic climate.
The revelations, as reported by Bloomberg on December 1, shed light on the adjustments made by Tiger Global, one of the leading players managing approximately $50 billion in investments. The Private Investment Partners 15 fund, boasting nearly $13 billion, found itself grappling with substantial markdowns across various tech unicorns.
Among the notable markdowns, the AI-powered email company Superhuman faced a staggering 45% reduction in its valuation, while the privacy-centric search engine platform DuckDuckGo saw a colossal 72% cut. Additionally, Tiger Global devalued its stakes in the trendy Bored Ape Yacht Club NFT collection by 69% and the NFT marketplace OpenSea by a staggering 94%.
These adjustments highlight the significant shift in perception regarding the initial valuations assigned to these high-profile ventures, casting doubt on their earlier estimated worth since Tiger Global’s initial investments.
The broader context reveals a challenging landscape for venture capital firms. Startups, once seen as the golden tickets to substantial returns, are now grappling with issues related to cash flow, exacerbated by rising interest rates. Philippe Laffont’s Coatue Management also made significant adjustments, slashing valuations for entities like OpenSea by 90% and marking down stakes in Calendly and Notion.
Tiger Global’s announcement last week about VC head Scott Shleifer’s transition to a senior advisory role has only added to the intrigue. Shleifer, a key figure in the firm’s investment strategies, is stepping down from his role effective Jan. 1, citing a desire to remain in Florida with his family.
This isn’t the first time Tiger Global has made significant adjustments to its venture funds. Last year, a similar move led to a 33% cut in valuations, resulting in a staggering $23 billion decline in overall value across its portfolio.
The repercussions of Tiger Global’s valuation adjustments extend beyond the firm itself, sending reverberations throughout the venture capital industry. It’s a stark reminder that even the most heralded startups are not immune to market fluctuations and investor recalibrations.
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