Venture capitalists remained on a steady pace in the first quarter of 2006, investing $5.6 billion in 761 deals, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association based on data provided by Thomson Financial. The quarter's dollar value matches the investment level from Q4 2005 and represents a 12% increase over the same time last year.

Internet-Specific companies captured $861 million going into 145 deals, a 10% increase in investment dollars over Q4 2005. Internet-specific investing has grown slowly over the last several quarters with Q1 accounting for 15% of total investments, compared to 14% in the prior quarter. ‘Internet-specific’ is a discrete classification assigned to a company whose business model is fundamentally dependent on the Internet, regardless of the company’s primary industry category such as Software or Telecommunications.