The IPO market is red hot, but not all companies are getting an easy start as a public company.

Hercules Technology Growth Capital (NYSE:HTGC) and GSV Capital Corporation (NASDAQ:GSVC) have a big stake in two red hot dot coms, but cashing out is proving more difficult than expected. Their respective portfolio companies are losing money hand over fist, while market turbulence is preventing early investors from realizing their profits.

In the following video, Motley Fool Financials Bureau Chief David Hanson and Fool contributor Jordan Wathen discuss why the sky-high valuations of two cloud-computing companies may not translate into profits for these two business development companies. 

  

Jordan Wathen has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.