VC Investors Warm Up to Tech Again

Bay Area Companies Lead Nation in Attracting Money to Expand Fledgling Operations
By Carrie Kirby, San Francisco Chronicle Staff Writer

Venture capitalists are returning to their old sweethearts, high tech and Internet companies, according to a survey of investment activity in the first quarter of 2006.

Young technology companies raised $3.36 billion nationwide, up 13 percent from $2.98 billion a year ago. In the Bay Area, technology startups raised $1.26 billion in the first quarter, up from $1.10 billion in the same quarter last year.