Investors are buying up stakes in many of the world’s most successful tech companies, including Facebook, Apple, Uber, Netflix and Netflix CEO Reed Hastings and his two harbors, the investment firm CB Insights and tradehouse investment company One Harbors Investment.
The latest data from CB Insight shows that investment funds have jumped almost 50% in the past year as venture capitalists, hedge funds and other early-stage investors have stepped in to help fuel the boom.
The total value of investment firms, hedge fund and private equity funds in the US grew about 40% from last year to $6.7 trillion, according to CB Insorts data.
But in the first two quarters of this year, the sector has seen its value rise about 30%.
It also appears that venture capitalists are buying into tech companies more than ever.
A large number of hedge funds, venture capitalists and private-equity funds have purchased into companies such as Twitter, Uber and Airbnb.
One Harbors investment in the year ending in September 2017 bought more than a third of Twitter, a stock that has been on a downward trajectory in recent years.
Twitter has struggled with a massive advertising revenue gap between the advertising revenue of its own products and those of rivals.
The company said last year it would cut ad revenue by $50 million.
One of the biggest new investments has been by venture capital firm Andreessen Horowitz, which owns a number of the companies that have emerged as major tech companies in recent months.
The firm has invested more than $2 billion in these companies, which have attracted venture capital firms and venture capitalists to the sector.
In an article published in The Wall Street Journal this week, Andreessen said the investments have created “a new class of investor.”
It’s important to note that Andreessen’s investments are mostly smaller companies, like social media company Snap, which are valued at around $2.6 billion.
In a note to investors, the firm said that “these investments are primarily focused on startups that have not yet established a global revenue stream, or that have less than a one-year head start.”
Andreessen Horowitz also bought a significant portion of Snapchat, a social-media company that has struggled to gain traction with its $3 billion IPO in January.