"All animals are created equal, but some are more equal than others". This proclamation by the pigs who control the government in the novel Animal Farm by George Orwell finds echoes among venture-capital (VC) firms too.
In this universe, the elite among equals includes the world's most active startup investor: Tiger Global Management. And like many elites, it has its quirks. So, unlike many other VC firms, Tiger does not usually ask for a board seat in the companies it invests in—irrespective of the size of the cheque it cuts.
Since 2021, this has also been the case with India's early-stage companies. The investment giant has been part of 10 Series A rounds, which include startups such as Jar, Battery Smart, and Groyyo, in 2022—up from just three in 2021.
This laissez-faire approach is a reason for Tiger becoming a favourite on any startup's captable,."Nobody ever says no to Tiger, and I can see why. They've been very hands-off throughout the process, letting us do our own thing within the terms of our agreement," says the founder of a fintech startup the VC has funded as the lead investor.
But why would Tiger deny itself the pelf and power that comes with a seat on the high table—something that others of its ilk covet? How does this approach work for it? Does it still call the shots? What's the impact on other VCs?
The tiger's