Hedge giant Tiger Global dips its feet into seed-stage funding
May 12, 2021
PitchBook data shows that Tiger Global has backed more than 100 companies so far this year. But the firm's investment in Blair, a seed-stage provider of income-share agreements for bootcamps, trade schools and other educational institutions, stands out.
- Typically, Tiger Global backs more mature companies. But TechCrunch reported last week that the firm has led a $6.3 million seed funding for Blair. The deal was Tiger Global's first seed round of the year and sits well above the $2.6 million median seed deal size, according to the Q1 2021 PitchBook-NVCA Venture Monitor. Meanwhile, the vast majority of the firm's other deals have been at the Series B stage or later, according to PitchBook data.
- Betting early on promising new startups may give late-stage investors a competitive edge in subsequent rounds of financing. The rising valuations seen in seed-stage deals in recent years reflect the growing involvement of larger brand-name firms seeking earlier access to hot prospects.
- However, not all seed-stage companies are interested in having a firm like Tiger Global lead their deals. Many early-stage founders are looking for go-to-market strategy guidance from experienced investors—something that Tiger Global does not offer. Unlike traditional VC firms, Tiger Global doesn't take board seats and it generally has a hands-off approach with its investments. Neither Tiger Global nor Blair responded to a request for comment.
- For some startups, the hefty prices offered by Tiger Global will be hard to resist, even at the seed stage. These founders may decide to accept capital at a high valuation, and then build a strong board at the next round of financing.
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