Hedge Funds Pumped Up Silicon Valley. Now They're Pulling Out
- Hedge fund investment in VC-backed tech rounds lowest in 3 yrs
- `We’ve completely stopped investing in private tech'
Why the Hedge Fund Love for Treasuries?
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In recent months, venture capital firms and mutual funds have become choosier about which technology startups they’re prepared to back. Now hedge funds, after helping push valuations to dot-com-era heights, are getting more picky, too.
Last month, hedge funds participated in the fewest number of venture capital rounds in U.S. tech companies since 2013, inking just two deals, according to research firm PitchBook Data Inc. Even Tiger Global Management LLC, an early backer of Facebook and LinkedIn with $20 billion under management, has pulled back. Smaller firms are getting out altogether.