Venture capital firms invested $21.8 billion in 3,277 deals in 2010, with the amount of money invested up 19% from 2009 and the number of deals 12% higher than the prior year, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association.
In the fourth quarter, the value of venture capital investments rose 2% to $5 billion and number of deals grew by 3% to 765. However, the amount of money invested and number of deals were both smaller than in the fourth quarter of 2009, when venture capital firms invested $5.4 billion in 864 deals.
Software companies garnered the most venture capital investment of the 17 industry categories tracked by MoneyTree in 2010, with $4 billion in 835 deals, an increase from $3.3 billion in 692 transactions in 2009. Biotech was second with $3.68 billion invested in 460 deals, down from $3.57 billion in 426 deals in 2009, when biotech had the most venture capital investment.
The MoneyTree Report is based on data provided by Thomson Reuters.