Deals
‘Tourist Investors’ Fleeing Silicon Valley for Better Sights
- Hedge funds, mutual funds and private equity pulling back
- Venture capitalists still have record levels of cash on hand
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Silicon Valley may get fewer tourist dollars this year.
Mutual funds, hedge funds and private equity shops earned the nickname “tourist investors” after their recent forays into private technology firms helped fuel the sector’s growth. But they have pulled back their spending in recent months, potentially fanning concerns that an outflow of hot money could crimp tech valuations or make it harder to tap new funding.