Yahoo Finance – The amount of venture capital startup companies are raising from hedge funds, mutual funds and others beyond the traditional venture capital community is skyrocketing, fueling fears of another tech bubble.
While venture capitalists poured $11.3 billion into startups in the first quarter, up only 11% from a year ago, non-traditional funds invested $6.4 billion, a 167% increase, according to a report on Tuesday from CB Insights, which tracks the market. Two years ago, the outsiders contributed less than $1 billion.