In 2014 bulge bracket investment banks stepped up their investing in tech start-ups, reaching a 6 year high. In our view, while this shows strong support for emerging tech firms, it mostly indicates the banks' desire to secure their IPO pipelines and future customer relationships.
Between 2009 and 2012, bulge bracket banks became increasingly more involved in tech deals. 2012 saw a peak of 46 deals, a 119% increase from 2009, and included investments in Square, Castlight Health, and Spotify. Though there was a dip in 2013, deal activity in 2014 has rebounded and will hit a 6 year high by end of year. In total, bulge bracket banks have been involved in more than 215 deals since 2009