Tiger International's seek for liquidity illustrates how busted the late-stage market is
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That is no tiger, that is a tabby!
The late-stage market is whacked. You solely want to take a look at how Tiger International Administration, beforehand one of many most lively traders in all of startup-dom, has didn’t discover a purchaser for a big basket of its stakes in personal tech firms.
The truth that Tiger didn’t, as PitchBook wrote, discover a purchaser for “a share of its stakes in about 30 firms [packaged in a] strip sale” implies the difficulty right here was that Tiger didn’t discover a purchaser prepared to pay nonetheless a lot it wished for these stakes.
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LPs in enterprise funds put their cash into an aggregated pool that’s then utilized by the enterprise agency to buy numerous stakes in a wide range of firms. The distinction between an LP in a brand new fund and Tiger, which is seeking to promote a large swath of stakes, is that the normal LP can’t know the place its pledged capital will find yourself.
Tiger, however, reportedly was seeking to promote a basket of its stakes to what we presume is the same buyer base. Its failing to discover a purchaser for that assortment implies that, on this case, extra info will not be serving to transfer these shares.
PitchBook studies that Tiger is now seeking to promote particular person stakes in a few of its portfolio firms to generate liquidity. Different traders are additionally struggling to promote collections of stakes, however they’re not seeing bids both, the report stated.
Oof.
Tiger didn’t instantly reply to a request for remark.
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