As tech stocks continue a steep month-long decline, companies are increasingly facing a tough audience of investors when raising capital.

The market swings and investors' actions have reverberated down the food chain from initial public offerings to early venture funding. There's still plenty of money, but investors are more selective in where they place their bets, what they demand in a company's business plan, and what valuations they're willing to pay, according to investment bankers and venture capitalists. Although e-tailers were among the first to find investor interest slip, other sectors may also be feeling pressure, given the Nasdaq composite index's 25 percent decline since March 10. Start-ups are facing new demands from institutional investors. Investors also want a company's IPO funds to last through the period until it is profitable, rather than serve as the first of several capital-raising events. As a result, a start-up is left to raise less money and to give a larger percentage of the company than anticipated. And as companies seek their third or fourth round of financing, which usually tides a company over until it goes public, late-stage investors may be scarce.