Mutual Funds Shun Startups

As I suggested a couple weeks ago, an important element of ongoing tech slowdown is the fact that recent huge funding rounds have been financed, in part, by big mutual funds. It now appears those investment firms are in fact pulling back from Silicon Valley, according to the Wall Street Journal.

In dotcom, retail investors played the role of greater fool by jumping in at the top. This time around, it may end up being a group who theoretically evaluates investments for a living.