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VCs Invest $22.1B In Deals in 2005

Venture capitalists invested a total of $22.13B in 2,239 deals, according to a report released today by Ernst & Young LLP and VentureOne/VentureSource. The report found that there was a 2% increase over 2004 in capital invested, led by medical device companies and consumer and business-service companies. However, the report also found that information technology investements had a 4% decrease in capital and 8% decrease in deal flow. The Bay Area led the nation in venture funding, which had 731 deals and $7.59B in investment, and New England, with 272 deals and $2.83B in investments. The fourth quarter also had a significant uptick in early-stage deals, the report said, with 38% of the quarter's financing round being early stage deals.