Tiger Global’s Lee Fixel comes to India, loaded with ca$h and simply invests. Invests a lot of money which often surprises the ecosystem.
Tiger Global’s (India) strategy is very simple : Invest a LOT of money and make every other investor take a back seat. When it comes to consumer businesses, a shitload of money often helps beat the competition – be it underpricing or insane marketing $$s. (e.g. Ola took on everybody with ~50% discount the moment they raised their Series B).
Tiger Global’s India Strategy
Tiger’s basic belief is simple : The last man standing will be the one who has raised the most amount of money. And Tiger will bet on those ‘last man standing’ companies. Period. Ola/Flipkart proves their hypothesis.
This of course does not gel well with a lot of investors in India because of the inflated valuation which impacts their investing plans in a big way.
Unfortunately, due to just one individual — Lee Fixel of Tiger Global — Flipkart has gone from being a poster child to being the single biggest risk to the technology ecosystem. I hope for a soft landing.” [Sharad Sharma , one of the most active angel investor /source]
So what really happens when Lee Fixel, who leads Tiger’s India investment visits India? These gifs pretty much tells the story.
Tiger’s portfolio companies before Lee Fixel’ arrival.
The focus is on showing massive traction, which often is driven by burning more money. Be it app installs or customer acquisition, the startups start investing heavily in ad channels to prove traction.
Startups After meeting Tiger’s Lee Fixel
Loaded with insane cash!
The startup ecosystem, when they hear of such big funding announcements ? Well, the first reaction is ‘You Must Be Kidding!’
Portfolio Competitors When They Hear Of Funding News
The first 5 seconds is a moment full of denial !
Once confirmed, they know that their fund raising plan / Business plan has changed for good (or bad?).
What about the other Indian investors?
They do NOT like the inflated valuation numbers. They know that they are being pushed!
And in between all this noise, the real fighters (a.k.a entrepreneurs) are honing their skills. They know that this is going to be a long war. And it’s not going to be easy.[Sources : 1, 2, 3, 4, 5.