Venture Capital Deals Hit Record High

Venture capitalists spent a record $3.59 billion in deals nationwide during the first three months of 1999, 11% more than in the fourth quarter of last year, as an abundance of risk-taking dollars flowed into Internet start-ups. The portion of venture money going to information technology firms soared to an unprecedented 58%, up from 43% in the first quarter of 1998, according to VentureOne Corp. of San Francisco, which tracks venture funding. “Venture capital investment is really becoming Internet venture capital investment,” said Rolf Selvig, VentureOne director of business development. Another accelerating trend in the venture world during the quarter: Although initial public offerings get all the attention, three times as much was spent on acquisitions of venture-backed companies as there was money raised from taking such companies public.