Coatue Management is a global investment firm that specializes in public and private equity investments in the technology, media, and telecommunications sectors. The firm was founded in 1999 by Philippe Laffont, a former technology analyst at Tiger Management. Since then, Coatue has grown to become one of the largest technology-focused investment firms in the world, managing over $30 billion in assets.
One of Coatue’s flagship investment vehicles is the 170m Series, which is a series of private investment funds that focus on early-stage technology companies. In this article, we will provide a comprehensive overview of the 170m Series, including its investment strategy, performance, and notable investments.
Investment Strategy
The 170m Series invests in early-stage technology companies that have the potential to disrupt their respective industries. The fund typically invests in companies that have already raised seed or Series A funding and are looking to raise additional capital to fuel growth.
Coatue’s investment team conducts extensive due diligence on potential investments, including analyzing the company’s financials, market opportunity, competitive landscape, and management team. The team also leverages its extensive network in the technology industry to gain insights into emerging trends and identify promising investment opportunities.
Once an investment is made, Coatue takes an active role in helping the company grow and succeed. This includes providing strategic guidance, introductions to potential customers and partners, and access to its network of industry experts.
Performance
The 170m Series has been one of Coatue’s most successful investment vehicles. According to PitchBook data, the fund has generated an internal rate of return (IRR) of 22.7% since its inception in 2012. This is significantly higher than the average IRR for venture capital funds, which is around 10%.
The fund’s strong performance can be attributed to its focus on early-stage technology companies, which have the potential for high growth and significant returns. Coatue’s investment team has also demonstrated a strong ability to identify promising companies and help them succeed.
Notable Investments
The 170m Series has made investments in a wide range of technology companies, including software, e-commerce, and fintech. Some of the fund’s notable investments include:
1. DoorDash
Coatue was an early investor in DoorDash, a food delivery platform that has become one of the most successful startups in the industry. DoorDash went public in December 2020 and is now valued at over $50 billion.
2. Instacart
Coatue also invested in Instacart, a grocery delivery platform that has seen explosive growth during the COVID-19 pandemic. Instacart raised $265 million in a funding round led by Coatue in 2018 and is now valued at over $39 billion.
3. Chime
Chime is a digital bank that provides fee-free banking services to its customers. Coatue led a $200 million funding round for Chime in 2019, which valued the company at $1.5 billion. Chime has since grown to become one of the most valuable fintech startups in the world.
4. ByteDance
Coatue was an early investor in ByteDance, the Chinese company behind the popular video-sharing app TikTok. ByteDance is now valued at over $100 billion and is one of the most valuable startups in the world.
Conclusion
The 170m Series is one of Coatue’s most successful investment vehicles, with a focus on early-stage technology companies that have the potential for high growth and significant returns. The fund’s strong performance can be attributed to its investment strategy, which includes extensive due diligence and active involvement in helping portfolio companies succeed. The fund’s notable investments in companies like DoorDash, Instacart, Chime, and ByteDance demonstrate its ability to identify promising startups and help them grow into successful businesses.
