Revenues Rise at Alphabet’s Biggest ‘Other Bet’ But So Do LossesRead Now

Daniel Sundheim, founder and chief investment officer of D1 Capital Partners, in 2019. Photo: Bloomberg.

Tiger Global, D1 Capital Signal Pullback From Big Private Tech Deals Amid Market Rout

By  |  Feb. 18, 2022 6:00 AM PST
Photo: Daniel Sundheim, founder and chief investment officer of D1 Capital Partners, in 2019. Photo: Bloomberg.

Responding to a steep sell-off in technology stocks, some hedge funds and other investment firms with large public stock portfolios have been turning away from investing in the most mature startups, reducing what’s been a crucial source of funding for the better part of two years. Instead they are focusing on buying beaten-down public tech stocks or investing in younger startups.

Tiger Global Management told its investors in a webinar earlier this month that it would no longer focus on backing large, late-stage startups preparing to go public, said a person with direct knowledge of the discussion. Instead, partner Scott Shleifer said the New York hedge fund would focus on investing in younger firms in Series A and B rounds, the person added. Shleifer did not elaborate on the reason behind the shift in strategy, but it followed the sharp decline in tech stocks over the past three months.

Other hedge funds including D1 Capital Partners, which invested in dozens of startup deals in the past couple of years, and smaller firms such as Octahedron Capital also have slowed down the pace of new late-stage private investments, according to three people with direct knowledge of the matter. These firms, also known as crossover funds, are instead focusing on buying shares of public tech companies that have sunk in value compared to the all-time highs they traded at last year.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
Market Research culture ai
Know Thy Selfie: A Journey Into the Uncanny Valley of AI-Generated Avatars
A selection of AI-generated selfies (good ones on the left, duds on the right) of the author Zara Stone.
At 7 a.m. on August 22, 2022, Yaron Inger woke up to find his business irrevocably changed. The co-founder and chief technology officer of Lightricks, which develops Facetune and other popular media-editing apps, scrolled through his newsfeed, his eyes flicking from one image to another. While Inger slept, Stable Diffusion, an open-source artificial intelligence text-to-image generator, had...
Latest Briefs
 
Google Invests $300M in OpenAI Rival Anthropic
Bankman-Fried’s Company Used to Buy Robinhood Shares Files for Bankruptcy
Musk Found Not Liable in ‘Funding Secured’ Tesla Trial 
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
A selection of AI-generated selfies (good ones on the left, duds on the right) of the author Zara Stone.
Market Research culture ai
Know Thy Selfie: A Journey Into the Uncanny Valley of AI-Generated Avatars
At 7 a.m. on August 22, 2022, Yaron Inger woke up to find his business irrevocably changed. The co-founder and chief technology officer of Lightricks , which develops Facetune and other popular media-editing apps, scrolled through his newsfeed, his eyes flicking from one image to another.
Art by Mike Sullivan.
Exclusive crypto
Genesis Creditors Could Miss Out on Recent Crypto Rally
Crypto prices have risen since parts of crypto lender Genesis filed for chapter 11 bankruptcy last month, lifting the value of customers’ crypto assets stuck in Genesis accounts.
Art by Clark Miller.
The Big Read culture
‘I’m Like a Guinea Pig—I’ll Take Anything’: An Explosion of Supplements Hits Tech’s Kitchen Counters
When Courtney Reum wakes up in his Los Angeles home, it’s time to freeze, shake and dangle upside down.
Amazon executive chairman Jeff Bezos. Art by Mike Sullivan
Exclusive e-commerce amazon
How Amazon’s Bricks-and-Mortar Dreams Hit a Wall
If Amazon’s ambitious vision for becoming a power in bricks-and-mortar retail had gone to plan, last month would have been a big milestone for the company.
Photos by Bloomberg
The Briefing markets google
For Tech CEOs, ‘Challenging’ Means Dismal
Challenging! That’s the euphemism of the moment, used by way too many tech CEOs (including Tim Cook and Sundar Pichai tonight and Mark Zuckerberg and Evan Spiegel in recent days) to describe either 2022 or the current moment or both.
YouTube CEO Susan Wojcicki. Photo by Bloomberg
Creator Economy google policy
YouTube’s Ad Revenue Falls Again; More U.S. Pressure on TikTok
A continued decline in YouTube ad revenue spells bad news for creators who earn money from the video-sharing site.