An interesting story of disruption. Tiger Global offers lighter diligence, cheaper capital, and less oversight of its portfolio companies. Sounds like a great strategy for frothy times, but what happens when risk is “off” and tech is no longer bid endlessly higher?
What happens? They will get less returns not zero. This is not a company in the traditional sense that they will go bankrupt so they will be fine.From the article, they are spreading the risk over various companies so there are going to be homeruns. They are also focusing on the growth stage not seed so at this point there are some signals on product market fit. Linking it to tech employment, its similar to engineers focusing on growing companies knowing that the chances of payout are high from stock options is high.
Companies that raised 100s of millions from Tigers will survive and thrive while all of the cash strapped startups will go out of business.
and they will buy great teams and some tech on the cheap.