The number of tech-only private equity firms is on the rise, with generalists, such as KKR and Carlyle, also creating tech-focused funds. High growth companies with little or no profit have not fitted the typical PE investment profile. However, as investors come to terms with their different growth trajectory and have seen examples of companies achieving the growth rates that can support the kind of multiples required to buy these types of assets, especially on the software side, they are increasingly willing to invest at valuations that would be incomprehensible in other sectors. There is speculation that there is a bubble in the technology sector, which means investors will still be cautious at the point of investment. But when they do come across top quality assets they should be prepared to go for it, as there is no doubt that others will be ready to invest.