Earlier this year, we highlighted that a sizable share of recent startup investments have come from non-traditional sources. In other words, investment companies other than venture capital firms.
Now six months later, Bloomberg highlighted just how dramatic the rise of these so-called "tourist investors" has been.
The question remains, as it did this Spring, what will happen when these firms, notorious for herd behavior, lose confidence in this startup cycle? As the chart above clearly shows, that giant sucking sound will be the evaporation of cash from the surrounds of the San Francisco Bay.