Tiger Global, the famous New York-based investment firm handling $60 billion in assets, is encountering challenges in its latest endeavour to tempt new investors.

After eight months of fundraising, the firm secured over $2 billion for its 16th private equity fund, aiming for $6 billion. This outcome underlines growing worry regarding the valuations of tech companies in the current market.

Tiger Global started its fundraising campaign for the new fund in October, aiming to make fresh investments in underestimated companies. As a result, Tiger Global is still enthusiastically seeking further capital.

This struggle to raise funds is not special to Tiger Global. Other famous venture capital firms, with New York-based Insight Partners, witnessed similar challenges. Insight Partners raised $2 billion for a fund targeted at $20 billion launched in June. The firm informed investors about cutting its goal to $15 billion.

The downfall of venture capital funding has touched levels unseen, driven by investor aversion to illiquid private markets and the decreasing value of tech firms. US venture firms observed an astounding 73% decline in the first quarter alone, raising nearly $12 billion associated with the previous year.

Tiger Global is seeking investment from large institutional investors, with pension funds and sovereign wealth funds, and affluent individuals with considerable holdings at major brokerages like Morgan Stanley.