Venture Capital Firms Swarming to Late-Stage Investments

Deal-hungry venture capitalists have been pouring money into late-stage investments -- companies that are near an initial public offering -- at a faster pace than at any time since the mid-1980s.

The late-stage cash is flowing so fast that by the end of the year as many as 300 companies will have registered their intention to go public, according to IPO Vital Signs, a Web-based service for such companies.

Despite this recent uptick in activity, the venture and IPO markets aren't what they were during the tech bubble and may never again be as robust -- or as risky. ...