Rocky tech stocks won't change VC funding: Expert

Rocky trading in technology stocks could force some companies to wait to go public, but truly innovative firms should continue to enjoy strong support from private donors, venture capitalist Yuri Milner said on Monday.

"We usually observe that the private side is following the public side. We have not seen the full extent of that yet. There is always room for a very disruptive company to not be affected by volatility," the founder of investment firm DST Global said in a CNBC "Power Lunch" interview.

A man works at the NASDAQ exchange in New York.
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A man works at the NASDAQ exchange in New York.

"Probably what's going to happen is that the IPO will be delayed and then the private markets, in this case, will play the most significant role in continuing funding those companies that cannot access the public markets.

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The tech-heavy Nasdaq composite has fallen more than 5 percent in the last three months in up-and-down trading. The index was choppy on Monday, as well, as biotechnology stocks took a hit on comments from presidential candidate Hillary Clinton.

Milner noted that large technology companies such as Facebook, Google and Alibaba look "fairly priced." However, he contended that smaller-cap technology names will continue to see volatility moving forward.

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