The world of venture capital is constantly evolving, with new players entering the market every year. One of the most prominent firms in recent years has been Tiger Global Management, which has made a name for itself by investing in some of the most successful startups of the past decade. One of its most notable investments was the $26.5m series it led in 2019. In this article, we will take a closer look at this investment and what it tells us about Tiger Global’s investment strategy.
In May 2019, Tiger Global led a $26.5m series in a startup called Figma. Figma is a design tool that allows teams to collaborate on design projects in real-time. The startup had already raised $15m in a previous round, but Tiger Global’s investment was seen as a major vote of confidence in the company’s potential.
At the time of the investment, Figma had around 50 employees and was growing rapidly. The company had already attracted a number of high-profile customers, including Microsoft, Uber, and Square. With Tiger Global’s backing, Figma was able to accelerate its growth even further, expanding its team and investing in new product features.
Tiger Global’s Investment Strategy
Tiger Global has become known for its aggressive investment strategy, which involves making large bets on promising startups. The firm has a reputation for moving quickly and investing heavily in companies that it believes have the potential to become market leaders.
One of the key factors that Tiger Global looks for in potential investments is a strong team. The firm believes that a talented and experienced team is essential for building a successful startup. In the case of Figma, Tiger Global was impressed by the company’s co-founders, Dylan Field and Evan Wallace, both of whom had previously worked at Facebook.
Another factor that Tiger Global considers when making investments is the size of the market opportunity. The firm is particularly interested in startups that are targeting large and growing markets. Figma’s focus on the design industry, which is projected to be worth $46bn by 2023, made it an attractive investment opportunity for Tiger Global.
The Impact of Tiger Global’s Investment
Tiger Global’s investment in Figma had a significant impact on the startup’s growth trajectory. With the additional funding, Figma was able to expand its team and accelerate the development of new product features. The company also used the funding to invest in marketing and customer acquisition, which helped to drive further growth.
In addition to the financial support, Tiger Global’s investment also provided Figma with valuable strategic guidance. The firm has a wealth of experience in the tech industry and was able to offer insights and advice to help Figma navigate the challenges of scaling a fast-growing startup.
The Future of Figma and Tiger Global
Since Tiger Global’s investment, Figma has continued to grow at a rapid pace. The company now has over 200 employees and has expanded its customer base to include some of the world’s largest companies. Figma’s success has also attracted the attention of other investors, with the startup raising an additional $50m in a series D round in April 2020.
For Tiger Global, the success of its investment in Figma is just one example of its ability to identify promising startups and help them achieve their full potential. The firm has continued to make large investments in companies across a range of industries, including e-commerce, healthcare, and fintech.
Tiger Global’s $26.5m series investment in Figma was a major milestone for both the startup and the venture capital firm. The investment helped to fuel Figma’s rapid growth and cemented Tiger Global’s reputation as one of the most influential players in the tech industry. As the world of venture capital continues to evolve, it will be interesting to see what other investments Tiger Global makes and how they impact the startups they back.