The technology revolution is happening in the blink of an eye. The recent technology advances are greater than those of the prior 100 years. New technology covers a wide spectrum - computers, bio-tech and environment, the medical and health fields, communications. In this new environment investors equate economic and shareholder value with technology and intellectual capital. And where the interest is because of the expectation of above average growth.
As new technology companies are often required to spend lots of money, without making money, they often go public to raise money. Venture capital will often provide financial support up to the IPO stage - as an exit strategy.
With an early stage company an investor group is in a position to own a larger percentage of the venture and to influence future strategies. Once the company is more mature, a new investor pays a higher premium for the shares and has little or no say in the company's future.