Where Venture Capital Is Still Flowing

A ray of hope in the hard-knocks economy: Despite few foreseeable exits, early stage investors are still making bets in a handful of promising, high-growth sectors. In fact, venture capitalists have put only slightly fewer dollars at stake as they did this same time last year, before the financial crisis had gained any traction. In the three quarters ended Sept. 30, venture-capital investment was down just 4%, to $22.3 billion, versus the same period in 2007, according to VentureOne, an industry tracker. Compare that to the relatively comatose market for initial public offerings, which tends to offer the juiciest exits for VC funds. Read more:

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