Venture Investing Up in Silicon Valley

Venture capital investment is finally on the rise again, suggesting a turnaround for Silicon Valley start-ups after three years of decline -- and with it could come more jobs.

Venture capitalists invested $1.62 billion in Bay Area companies in the fourth quarter -- up a strong 20 percent from the $1.35 billion the quarter before, according to the MoneyTree Survey conducted by PricewaterhouseCoopers, Venture Economics and the National Venture Capital Association.

It's the first real upswing in investments in a year and is the most funding since mid-2002.

However, it will take another quarter or two to see whether the trend continues. For the year, 2003 still saw a decline in overall local investments, to $5.87 billion from 2002's $7.02 billion.

A rise in venture investment into start-ups is promising because it is considered one of the earliest signs of a recovering economy, especially in a region so dependent on entrepreneurs. Start-ups have traditionally created the most job growth in the valley.

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