Tech Startups Are Seeing Their Share of Venture Investing Pie Shrink

Venture capitalists have more cash on hand to invest than ever before, but private technology firms are seeing a shrinking share of the pie.

``Tech privates continue to lead the total VC investment landscape, but other primary verticals such as healthcare, consumer, financials, industrials and energy continue to occupy roughly 40 percent of VC investment,’’ Goldman Sachs Group Inc. analysts led by Heath Terry, wrote in a note to clients.

As Goldman points out, cash on the sidelines is sitting at an all-time high, so tech startups won’t likely see large declines in dollar terms. But it does mean some of the other areas Goldman will be focusing on in a new series of reports on venture capital, such as healthcare and financials, could stand to benefit.