Fewer IPOs will stall tech jobs

America’s main engine for high-tech jobs could soon be running on fumes. Venture capital firms — those gurus who fronted the cash for Apple, Google and a host of other household names — committed $7.5 billion to 966 deals last financial quarter, according to PricewaterhouseCoopers and the National Venture Capital Association. But that level of investment is not sustainable without changes to how publicly traded companies are regulated, according to association President Mark Heesen.

The problem is that venture capital firms have to replenish their coffers by having companies issue stock in initial public offerings. Without new public offerings, it’s harder for venture capital firms to exit their investments, pay back their own investors and buy stakes in new companies. Not enough IPOs means not enough investment in the kinds of start-ups the Obama administration says will reinvigorate the nation’s sluggish economy.