CHICAGO—US venture capital firms have continued their pullback from the world of high tech. In the third quarter, these investments dropped 13.6% on a 12-month trailing basis, according to a study released last week by Chicago-based JLL. Additionally, the number of deals dropped 35% compared with this quarter last year.
The drop could eventually make an impact on the US office market. As reported in GlobeSt.com, the sector drove roughly 25% of the leasing activity in the top US metro areas over the past two years.
Experts say that after the explosion of interest in high tech following the 2007 release of the iPhone, many investors have adopted a wait-and-see attitude as entrepreneurs struggle catch the next wave of development, perhaps with driverless cars or virtual reality tools.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
