According to Reuters, tech companies saw $15.3 billion worth of investments in the second quarter of this year. This was a more than 20 percent increase in total investments compared to the first quarter, and 4th highest dollar amount since the year 2000. But what exactly is driving this growth in the face of such recent declines?

I wrote about this topic on my blog recently. Check out the full story; I’d love to hear your feedback.

For many investors in private, pre-IPO technology the recent return of fear was overdue and taken in stride. However, the growth in late stage start-ups and the increase in late stage start up investing have changed the volatility and attitudes in the market. We saw large slides in the public company comparables that many use to judge the valuations of pre-IPO firms. These slides and a widespread sense of overdue draw down in valuations, combined with jitters driven by recently expanded ranks of private technology investors, created a partial swoon. This allows us a rare and valuable chance to look back and learn from a stress test.

Visit my blog for the article.

Jared Carmel

Jared Carmel is a Managing Partner at Manhattan Venture Partners. Enjoys fishing, history & the NY Jets. Learn more about Jared Carmel: http://jaredcarmel.com

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