VCs Invest $22.1B In Deals in 2005, $2B in Southern California

Venture capitalists invested a total of $22.13B in 2,239 deals in 2005, 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. Southern California ranked as the third most active region of the country for the fourth quarter in terms of venture deals, with the report tracking 203 deals and a total of $2.09 billion invested. Southern California came in behind the Bay Area, which had 731 deals and $7.59B in investment, and New England, with 272 deals and $2.83B in investments.