2005 Q3	Q2	Q1	2004 Q4	Q3
(millions of dollars)
Communications	774.84	973.02	625.38	575.15	680.17
Electronics	273.33	327.77	209.11	321.82	257.68
Info Services	383.85	109.90	322.75	333.50	185.00
Semiconductors	427.25	437.04	325.45	321.95	440.15
Software	1,252.12	1,353.85	1,353.85	1,414.30	1,249.79

Source: Dow Jones Venture One

Betting on Communications

Software startups remained the biggest repository of venture capital funding in the third quarter, thanks to the relatively low cost of building software companies and the wide range of would-be recipients in the category, researchers say.

But elsewhere in techdom, communications companies are having a very good 2005. In fact, the year through September is the best since 2002. The amount invested has been on the rise in recent quarters even as the number of deals has stayed in a range. For instance, FiberTower raised $150 million in a single round.

Information services has been more volatile, surging to $394 million in the third quarter from $109 million in the preceding period and $322 million in the first. It's hard to say what's behind the fluctuation. Information services is a catch-all category that includes any tech company peddling a service, as opposed to a product. It includes not-so-sexy consulting and data management services that don't normally see a flood of venture dollars. But it also encompasses Internet companies that make money from advertising. As Google's stock and profit surges reignite dot-com fever, Internet-related deals are buoying the category.

Posted: 12/5/05

Also see:

Deal Flow -- BusinessWeek Online's blog that looks inside the world of M&A, IPOs and venture capital