Seed MoneyVC financing for early-stage companies is back in bloom.

After nearly three years of decline, the amount of capitalinvested by venture funds is back on the rise. According to arecent MoneyTree Survey by National Venture Capital Association,PricewaterhouseCoopers and Thomson Venture Economics, ventureinvestments in early-stage companies jumped 43 percent andaccounted for more than $956 million nationwide during the secondquarter of this year-an increase of $288 million from the firstquarter. Since venture funding started its free-fall in 2000, VCfirms have been reluctant to invest in new ventures, preferringinstead to shore up existing portfolio companies or to invest inlower risk, later-stage companies. This jump marks the firstsignificant increase in early-stage funding since the fourthquarter of 1999.

The results were corroborated by San Francisco VC research firmVentureOne, which showed that start-up funding in the secondquarter of this year increased 13.6 percent over the first quarter.The increase in activity is not limited to the VC epicenters of NewYork and California. Small but meaningful increases were notedacross the country and across several industries. A strong surge inbiotech and health-care investing led the way.