The Technology Report
Modern tech platforms have proved their maturity through the pandemic. Enterprise software and other subscription solutions have proved that they have staying power, and that private investors consider them mission-critical. These trends have only solidified technology’s prominent place in many portfolios.
Yet it’s worth being cautious as well, given that there are so many generalists mingling with tech specialists these days. LPs would be wise to ensure they are as diversified as they believe themselves to be. Our reporting found that LPs are becoming more nuanced in their approach to technology investing, and that they are seeking to invest with partners that are able to achieve higher risk-adjusted returns.
Technology investments are being made for both offensive and defensive reasons, and that is leading to even more nuance within the market. For investors in need of diverse justifications for putting so much money into tech, that nuance is surely appreciated.