The technology sector has accounted for 30 per cent of US IPOs in the last 12 months, according to figures from Renaissance Capital, but high-profile new floats are already losing their shine.?

Internet radio company Pandora and media group Demand Media have fallen around 50 per cent from their peaks. Holiday rental business HomeAway and online property concern Zillow are down 30 per cent. Pessimists point out LinkedIn has fallen from its high, although it is still trading above its issue price.

Analysts at Renaissance Capital think that the tech sector can still offer ?diamonds in the rough?, pointing out that companies such as Groupon and Zynga, which are currently preparing to go public, respond to fundamental shifts in consumer behaviour and are therefore less vulnerable to market turmoil.

LinkedIn, on the other hand, is a ?hyper-cyclical? business, according to Jordan Rohan, an analyst at Stifel Nicolaus, who told the Financial Times that a high percentage of its revenue is linked to the recruitment industry.


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