Venture capitalists in the US invested more in Q2 2007 than in any period since 2001, with Web 2.0 startups receiving much of the cash.
The FT reports that investment in information services companies, which includes IT-based services as well as Web 2.0 startups, reached $979m (£476m) in the second quarter of the year.
This means that VC investment rose by 52% over Q2 2006, and more was invested than in the whole of 2003. Medical companies were the only category to receive more VC cash.
At the end of last year, Ernst and Young reported that VC investment worldwide was reaching the highest levels since 2002. Its figures show that $844m (£431m) was invested in Web 2.0 startups in 2006, compared to $406m (£206m) in 2005.
Much of this investment went into US startups, with 126 of last year's 167 Web 2.0 deals involving US firms, while five of the deals involved UK companies, with a total of $23.4m (£11.9m) invested in this country by VCs.
Should Web 2.0 startups seek venture capital?