NEW YORK –- U.S. venture capital investment rose to as five-year high in 2006, according to the MoneyTree Report issued today by Pricewaterhouse Coopers and the National Venture Capital Association.
The report, based on data from Thomson Financial, showed venture capital investments increased 10 percent to $25.5 billion, the highest level since 2001. The sharp increase, the report says, was bolstered by increased investments in biotech and Internet-related firms.
Biotech attracted a record $4.5 billion in 2006, up 15 percent from a year earlier. Investments in medical devices were up 29 percent to $2.7 billion, also a record.
Together, biotech and medical devices accounted for nearly one-third of all venture capital invested.
The software sector attracted $5 billion in venture capital — the most of any single industry — but the report data showed the growth was flat from the previous year.
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The report also indicated that firms that rely on the Web received $4 billion, representing growth of 25 percent.
Another big area of investments was in energy start-ups — they more than doubled $1.8 billion. About 40 percent of that amount went to alternative energy firms, which have attracted venture capitalists in recent years.
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