This was the fifth consecutive quarter, beginning with the third quarter of 2002, to see venture capitalist investments around $4 billion.
Biotechnology displaced Software as the sector attracting the most money from venture capitalists, receiving $873 million, an increase of 31% from the previous quarter and 88% from a year ago. Life Sciences, a larger sector, including Biotechnology and Medical Devices & Equipment, drew $1.24 billion, or 30% of dollars invested, the PwC/TVE/NVCA MoneyTree Survey reported.
Other sectors attracting investment included:
- Software ($819 million)
- Telecommunications ($492 million)
- Medical Devices ($376 million)
- Networking ($331 million)
First-time investment remained steady to that of previous quarters, with 22% of all companies receiving $766 million.
Of the first-time investment dollars:
- 28 Software companies received $138 million
- 16 Biotechnology companies received $72 million
- 15 Medical Devices companies received $54 million.
- Seven Telecommunications companies and six Networking companies received first-time investment.
More than half of the investments made by venture capitalists went to expansion stage companies, later stage companies received 22% of all money invested and 20% of investments went to early stage companies according to the PwC/TVE/NVCA MoneyTree Survey.