Back to the Private Equity Markets?

While desperation comes easily to many technology companies these days, capital doesn't, and that simple fact may start driving publicly traded firms back to the private equity markets in search of cash infusions that can keep them in business.

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It may be ironic that investors now shun the companies on which they once bestowed outsize valuations, but it's no joking matter to firms seeking cash. Without the cash flow to service debt or the growth rates to tap the public markets, tech companies may begin turning increasingly to hedge funds, buyout funds and other private deals, investment bankers say (and surely hope, as their underwriting businesses evaporate).

And while most individual investors can't get in on the deals -- they're not registered for sale with the Securities and Exchange Commission and primarily are peddled to strategic and institutional investors -- following the lead of sophisticated funds can show which companies have valid business models and help target potential survivors of the market's jihad against the New Economy. ...