⚡ Get All Content for 20% Off ⚡

Big Money: VC Investing Is Hot in 2014 More than $33 billion was invested in startups by venture capitalists in the first three quarters of this year, surpassing the $30 billion invested by venture capitalists in all of 2013.

By Catherine Clifford

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Cash-hungry entrepreneurs, get excited: The venture capital industry is on a roll.

In the first three quarters of this year, the venture-capital industry invested more than $33 billion in companies according to the recently released MoneyTree Report jointly produced by PricewaterhouseCoopers LLP and the National Venture Capital Association using data provided by Thomson Reuters. Already, that's more than the $30 billion invested in all of 2013.

The third quarter (ending in September) marked the sixth consecutive quarter where more than 1,000 companies received venture capital investment, according to the report.

Related: Want Angel Investors? Here's What You Need to Know Right Now. (Infographic)

In the third quarter, venture capitalists invested $9.9 billion in 1,023 deals. That's a slowdown from the second quarter, when $13.5 billion was invested in 1,129 deals, the report states. Despite the quarter-over-quarter dip, the venture capital industry in the U.S. is seeing a "healthy level of investing," according to Mark McCaffrey, global software leader and technology partner at PricewaterhouseCoopers, in a written statement.

The software industry receives more venture capital money than any other industry in the U.S. In the third quarter, venture capitalist sunk $3.7 billion into software companies. That's down noticeably from the second quarter, but that's because in June, Uber a received a $1.2 billion venture capital investment, making it the largest round the venture capital industry has ever seen.

The media and entertainment industry came in second receiving $1.8 billion for 118 deals while the life science sector fell 35 percent in dollars.

Related: Uber Breaks a Record With Its Latest Funding Round

The venture capital industry has been supported by, in addition to a solid IPO market, the entrance of new sources of money. "The emergence of non-traditional investors, including hedge funds and mutual funds, is contributing to the increase in venture investing this year," said Bobby Franklin, president and CEO of the National Venture Capital Association, in a written statement.

Also, technology developments grow exponentially. And, entrepreneurs, as a group, are equipped with powerful enough technology to boldly take on industries still dominated by an old guard. Consider how the supercomputer in your pocket -- your smartphone -- has upended the transportation, accommodation and delivery industry. That kind of action gets venture capital investors excited.

"Another factor that can't be ignored is the changing nature of our economy, where startup companies are disrupting entrenched industries and, in some cases, creating new industries altogether. Traditional and non-traditional venture investors alike recognize this and want to get in on the ground floor of innovation," said Franklin.

Related: Salesforce Launches $100 Million Fund to Invest in Entrepreneurs Building Apps On Its Platform

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.