Wall Street Woes Will Wallop Tech Sector

Drying up of IPOs expected to hit tech ventures especially hard
By Rob Quinn,  Newser Staff
Posted Sep 16, 2008 2:02 AM CDT
A stock broker takes a break at the New York Stock Exchange yesterday.   (AP Photo/Mark Lennihan)
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(Newser) – Troubles hitting the Wall Street giants promise particularly dark days ahead for the tech business world, analysts tell CNET News. The problems are bound to stifle mergers and acquisitions in the tech industry and further dampen the market for initial public offerings. IPOs have already slowed to a trickle—and may soon grind to a halt.

The drying up of IPOs will be a major blow to early-stage tech ventures as investors are forced to keep putting money into late-stage firms, analysts predict. "What would have happened if Dell or Google or Amazon or eBay didn't go public? Think of all the jobs that would have been lost," said an executive from the National Venture Capital Association. The trade group is planning industry meetings this fall to drum up smaller "boutique" financing deals.