James Ashton: A few pricked bubbles won’t curb our appetite for a new wave of tech floats

 

Business Editor

Danny Rimer, a prime mover at the internet investment house Index Ventures, debunked a few theories when we met last summer.

One was that anyone late to the digital world had already missed the boat. The other was that British pension funds ran scared of investing in tech firms with explosive growth rates but negligible profits.

Mr Rimer, whose firm’s hits include investing in Skype, Facebook and Betfair, argued that London’s problem with technology, such as it was, had nothing to do with institutional investors that increasingly take a global view and talk across offices about which stocks to back. Rather, Mr Rimer suggested that equity research teams had failed to keep pace with the changing media scene, often expecting the same analyst to monitor Google as well as broadcasters and publishers – whereas on Wall Street a slew of teenage scribblers are carving up the internet universe.

The contraction in the breadth and quality of equity research is a subject for another column. Aside from which investors are the better informed, this week’s correction in global technology values was long overdue. It took the froth off big names like Amazon and Netflix, as well as newer entrants that have been enthusiastically received in London, including the takeaway website Just Eat and AO.com, a seller of appliances.

The bubble afforded racy valuations to companies that show a glimmer of being the next Asos or Rightmove. It was predicated on the belief that nothing could stop exponential growth stretching out for years. Those that boldly placed their bets could be right, but backing technology is nothing if not a bumpy ride. Better that investors take a portfolio approach rather than putting their faith in just one Next Big Thing.

The bigger question is whether such wobbles will poison the pool for the queue of market listings to follow. My suspicion is they won’t. Crimean tensions aside, global markets are feeling quite chipper. New issues are their lifeblood. The US isn’t going to choke off the supply of cheap money any time soon and the emerging markets sell-off is less worse than many feared.

PROMOTED VIDEO
Life and Style
food + drink
Arts and Entertainment
musicBand's first new record for 20 years has some tough acts to follow
News
Shoppers in Covent Garden, London, celebrate after they were the first to buy the iPhone 6, released yesterday
tech
News
Liam Payne has attacked the media for reporting his tweet of support to Willie Robertson and the subsequent backlash from fans
peopleBut One Direction star insists he is not homophobic
Life and Style
healthFor Pure-O OCD sufferers this is a reality they live in
Arts and Entertainment
A bit rich: Maggie Smith in Downton Abbey
tvSeries 5 opening episode attracts lowest ratings since drama began
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Quantitative Risk Manager

Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...

COO / Chief Operating Officer

£80 - 100k + Bonus: Guru Careers: A COO / Chief Operating Officer is needed to...

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Day In a Page

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments