Business Services Industry

Tech Watch: After market's tumble, investors hedge bets.(Statistical Data Included)

Crain's Chicago Business, April, 2000 by ROSE, BARBARA

Venture backers' phones -- eerily silent during the stock market's recent record plunge -- suddenly are ringing again. But the callers have changed their tunes. Entrepreneurs are less cocky. Investors are more cautious. Venture capitalists are demanding more equity for their money. And fewer first-time entrepreneurs are getting funded.

"Definitely, the game has changed," says Keith Bank of KB Partners LLC in Northbrook, which is close to closing its second fund to invest in early-stage companies. "A lot of people are feeling a sting." Among them: scores of privately backed dot.coms that had planned to go public this spring and summer. (Nearly 350 U.S. companies are registered to raise a collective $44 billion via initial public offerings, including 11...

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