Post-IPO, Mutual Funds Quick to Shrink Startup Stakes

Mutual funds investing in private tech firms are often perceived to be in it for the long haul, rather just holding out for an IPO windfall. But public filings tell a more complicated story: Mutual funds sometimes cut their investments substantially after their portfolio companies go public.

Mutual funds have sold significant portions of their stakes in such high-profile tech companies as Roku, Twilio, Pure Storage and Blue Apron. The funds in some cases have purged their stakes faster than venture capital firms, which normally look to offload their holdings once the startups go public.