Even as some venture-capital firms have become skittish after the disappointing initial public offerings of Facebook, Groupon Inc. and Zynga Inc., a number of hedge funds, private-equity firms and other asset-management firms are pouring money into closely held startups.
Even as Facebook, Groupon and social-games maker Zynga Inc. struggle in the public market, tech companies with names like Splunk Inc. and ServiceNow Inc. that make harder-to-understand products for businesses are snagging attention with stellar IPOs and strong growth.
For venture capitalists and other prominent investors in young companies, an initial public offering is supposed to be the big payoff for years of patience. It’s not working out that way for some backers of newly public Internet companies.
If you haven’t heard of Pinterest, you likely will soon. Traffic to the website — which lets users create online scrapbooks to share images of projects or coveted products — has grown tenfold over the past six months.