Tiger's losses continue to mount as it cuts it management fees.

Plus: Just how badly are VC-backed stocks doing compared to the rest of the market?

Inside.com Part of   Network June 03, 2022

Tiger Global’s hedge fund sank another 14.2% last month, bringing the PE giant’s total losses this year to 52%. The firm responded by cutting management fees by .5% to 1%. It has also created separate accounts for the illiquid wagers of customers seeking redemptions. More: Even before the losses in May, Tiger’s portfolio had lost $16B in value. Its worst-performing bets include Snowflake, Crowdstrike, RingCentral, and Workday, all of which fell at least 20% last month. The firm is effectively too exposed to illiquid venture assets that it gained during its investment spree last year. To compensate, long-only private investments will be placed in a separate account that will be cashed out at a later date. Tiger will offer customers in the hedge fund the ability to redeem as much as 33% of their investment this year despite lock-up terms, up from the usual limit of 25%. Customers who invested only in the long-term product will be maxed out at 20% redemptions. It has also shifted its high-water mark, meaning that until the fund makes up more than 100% of lost investor cash, it will charge a reduced performance fee of 10% on gains rather than the typical 20%.

South Korean AI semiconductor startup Rebellions has raised $50M (₩62B) Series A from investors including Temasek’s Pavilion Capital. Further participation came from Korean Development Bank, SV Investment, Mirae Asset Capital, Mirae Asset Ventures, IMM Investment, KB Investment, and KT Investment, and previous backers Kakao Ventures, GU Equity Partners, and Seoul Techno Holdings. More: The oversubscribed round became $10M larger than the 2020-founded company initially targeted. The company has now raised $80M to date at an estimated $283M valuation. It will use the new funding to mass-produce its second AI chip prototype, ATOM. Additionally, the company seeks to double its headcount to 100 and set up an office in the U.S. this year. Rebellions’ first chip, ION, has yet to hit the market, but its target customers include global investment banks, where it could boost trading speeds. ATOM is intended for large companies in the cloud sector and data centers. The wider lens: The AI chip market is projected to be worth over $83.2B by 2027, up from $56B in 2018, according to Insight Partners. VC funding for global chip startups has grown by over 300% in 2021, with $9.9B invested across 170 deals, per PitchBook.

The performance of PitchBook’s VC-backed IPO index has fallen 54.1% since the beginning of 2022. The losses are nearly triple the 18.7% decline of the S&P 500, illustrating the divergence between growth and non-growth companies on the stock market. More: Still, this has yet to make a significant dent in the valuations of private companies. The Q1’22 median pre-money valuation was broadly flat relative to 2021 for most stages with the exception of late-stage VC, which has already started to display some signs of valuation decreases at the median. At the late stage, the average valuation for new rounds has fallen below $600M from almost $800M last year. The immediate effects are most pronounced for companies that have reached unicorn status, which have seen big valuation cuts, and for the pace of mega-rounds ($100M+), of which 2022 has only seen 185 so far with a total value of less than $50B. That is down from 845 in 2021, totaling around $200B in total value.

UnitySC, a provider of metrology and inspection equipment for the semiconductor industry, has raised $51.65M (€48M) in fresh capital. The French company’s round was co-led by Jolt Capital, French Tech Souveraineté (operated by Bpifrance with the French government), and Supernova Invest. More: UnitySC has seen 70% growth since 2020 and expects a doubling YoY of revenue in 2022. It claims to be scaling three times faster than the global semiconductor capital equipment market. Commanding a portfolio of over 150 active patents, the company has ​​subsidiaries in Germany, Singapore, Taiwan, South Korea, China, and the U.S. As demand for chips grows and their availability faces headwinds from trade disputes and logistical problems, it becomes critical for manufacturers to boost the speed of production and inspection. UnitySC claims that its advanced packaging measuring and patterned and unpatterned defect inspection for compound semiconductors can save energy and boost yields.

Today’s Funding 💸 Adtech/Martech Try Your Best (U.S.), Avalanche-based on-chain community creation platform for brands: $9.8M led by Unusual Ventures, Sogal Ventures. Biotech/Health MycoMedica Life Sciences (U.S.), fungi-based therapeutic drugs to prevent and treat psychiatric and neurological disorders: $60M from Obvious Ventures, True Ventures, Kittyhawk Ventures. Endpoint Health (Palo Alto, Calif.), therapies for immune-mediated acute and chronic diseases: $52M from Mayfield, Humboldt Fund, AME Cloud Ventures, Boom Capital, Alix Ventures, Yaya Capital, et al. Transition Bio (Cambridge, U.K.), microfluidics-driven drug discovery platform: $50M A from Northpond Ventures, Taiho Ventures, Bristol Myers Squibb, Magnetic Ventures. SpectrumAi (Los Angles, Calif.), solutions in the autism space: $9M Seed led by F-Prime Capital, Frist Cressey Ventures, participation from Autism Impact Fund. Consumer Yummy (Santa Monica, Calif.), local on-demand delivery and transportation super app for LatAm: $47M led by Anthos Capital, participation of JAM Fund, Soma Capital, WIND Ventures, Ethos Capital, YC Continuity. Bark Technologies ​​(Atlanta, Ga.), platform to alert families to the online dangers facing children: $30M C led by Kayne Partners. Fintech Sanlo ​​(San Francisco, Calif.), financial OS for game and app developers: $10M A led by Konvoy, participation from Initial Capital, Portage Ventures, XYZ Venture Capital, London Venture Partners, Index Ventures, et al. FinTron (Stamford, Conn.), investment and personal finance application provider: $6.5M A from AUA Capital Management, Connecticut Innovations, Sage Venture Partners, Webster Bank. Manufacturing RealWear (Vancouver, Canada), assisted reality solutions for frontline industrial workers: $23.5M C led by Foundry Group, participation from Qualcomm Ventures, Kopin, Columbia Ventures Corporation. TravelTech Journera (Chicago, Ill.), real-time data exchange for creating more seamless travel journeys: $10M B-1 led by B Capital, participation from Andreessen Horowitz, BCG, PAR Capital. Did you enjoy reading about all of today's funding in one place? The funding roundup is only available to free users on Mondays and Fridays. Upgrade to Inside VC Premium for either $10/month, or $100 billed annually, to receive the full list in every issue! For a limited time, we are offering a 14-day free trial. Click here to sign up! Sign up now to test Inside VC Premium

Quick Hits In a recent survey, 70% of respondents said their employment records more accurately reflect their ability to repay than their credit score.* Anand Iyer, a former Microsoft expert on developer infrastructure, has raised a $20M maiden fund for his new firm Canonical Capital. The solo GP will bet on Web3 after spending last year cutting his teeth at Pear VC.  Pinterest has acquired AI-powered shopping service for fashion The Yes for an undisclosed sum. Cerberus Cyber Sentinel Corporation, an Arizona-based cybersecurity consulting firm, completed the acquisition of Creatrix, a cybersecurity and information provider, for an undisclosed sum. Carbon Health, a recent recipient of a $350M Series D funding round, cut 8% of its employees, or 250 in total. The biotech unicorn offers virtual care. Find out which of these types of partnerships 110 executives preferred the most in the survey results.* *This is a sponsored post.

Upcoming events at Inside: June 07 - June 08 - Cloud Innovation Summit: See what high-performance cloud app dev looks like. (Register Here) * June 09 - Empowering Content Creators with No Code (Register Here) June 15 - Need To Know NoCoder - Artem Harutyunyan (bardeen.ai) (Register Here) June 16 - Future of the Art Market (Register Here) June 30 - HR Strategies to Retain Remote Employees (Register Here) July 20 - Need To Know NoCoder - Yassine Tahi (Kinetix) (Register Here) *This is a sponsored post.

Inside VC's writer/curator Stephen currently lives in Berlin and is pursuing a Master's degree in philosophy. He otherwise spends his time trying his hand at recipes from India and Southeast Asia, escaping it all at the kickboxing gym, and offending aural sensibilities with his band. Editor Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford.

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