The VentureOne Q1 numbers are out and show that the VC investment is on a path of surpassing last year’s investment. In 2006, $26b was allocated and Q1 of this year is up 8% over last year’s first quarter, totaling $6.9b in comparison to the $6.4b 2006 level. However, this is due to increase in money raised rather than the number of deals actually funded, as 30 less deals were funded in Q1 of 07.

Trends that were noted in the quarterly report produced by Dow Jones VentureOne and Ernst&Young were:

• Investors are financing more seed- and first-round deals (early stage making up the majority of deals at 37% of financed companies)
• Significant increase in life science investments (this quarter being the highest investment level on record at $2.88b). This included speculation that this resulted from the aging of the baby bommer.
• Deal allocation included an increase in healthcare and alternative energies with a decrease in information technology except in the web2.0 realm
• Increase in valuations, with a median of $8m

Interestingly, Dan Primack of the PEHub notes that the five-year performance moved from negative to positive since Q3 of 2006 (from -1.2% to +1%).