The late-stage gold rush for big name tech companies keeps heating up. JP Morgan announced a new $500-750 million fund today to invest in top technology firms like Facebook and Twitter.
It will be interesting to see how JP Morgan handles these investments for U.S. clients, after watching rival Goldman Sachs botch an opportunity for their top-tier American customers to buy into Facebook.
The arrival of so much capital in recent weeks shows why local firms like Union Square Ventures felt compelled to raise a quarter of a billion dollar “Opportunity” fund that will allow them to participate in the increasingly expensive rounds for portfolio companies like Twitter.
The best ballast for these skyrocketing valuations would be for the SEC to insist on disclosure of company financials per the 500 shareholder rule, providing a quarterly reminder that firms like Twitter have yet to find a working business model.
bpopper (at) observer.com / @benpopper