The word “Tech” can be a very broad term used to refer to a variety of new and exciting technological developments. Technological change is often accompanied by significant social change – in which case it is called “social change” – and it is sometimes necessary to distinguish between the two. Tech refers to any methods, skills, techniques, or processes used in the development of new products or services or in the achievement of specific goals, for instance scientific research. It also typically refers to technology in education, business, and manufacturing.

Venture capitalists usually fund only those tech companies whose business plan is able to provide a reasonable amount of long-term value to its investors while still retaining enough liquidity to cover its obligations to its stockholders. In addition, venture capitalists are often unable to obtain further funding from outside sources for most early-stage companies. Hence, it is extremely difficult to raise capital through standard commercial loans for most new tech companies. But because of their relatively high risk tolerance and due diligence practices, venture capitalists are willing to finance relatively small amounts of venture capital for high risk ventures with good opportunities for returns.

A number of angel investors and venture capitalists specialize in investments in tech companies. Typically these investors have an expertise in identifying and funding small but promising companies or in managing the investment and management of larger technology companies. They typically seek to participate in the downside potential of an emerging company so that they can have a greater control of its management and operations. One of the largest technology companies in the world is Apple, which has had some of its shares sold to private investors since it went public in its initial public offering in April 1998.