Venture capital is blowing up, while technology shares are cooling off.
VC firms in the U.S. raised $8.9 billion in the first quarter of 2014, more than double the amount raised to start 2013, according to new data published by the National Venture Capital Association, which called it the industry’s best quarter since 2007.
At the same time, publicly traded technology companies have led a broad decline in stocks in recent weeks, with the Standard & Poor’s 500-stock index down 2.8 percent since hitting an all-time high on April 2. Micron Technology (MU), First Solar (FSLR), Yahoo! (YHOO), and Facebook (FB) have all lost more than 9.7 percent since then. Some young technology companies have fared even worse, with Twitter (TWTR) losing 10.2 percent, Groupon (GRPN) down 16.8 percent, andYelp (YELP) off 21.1 percent over the same period.