Venture capital investments in the US jumped by 24 per cent to a record $14.3 billion (€12.7 billion) last year, according to a new survey, with technology start-ups grabbing the lion's share of the funds.

With venture capital funds achieving average returns of 30-40 per cent, money is flowing into the "risk capital" sector at an unprecedented rate, according to the quarterly PwC venture capital survey.

Technology investments almost doubled in the past two years, to $10.8 billion in 1998, up from $5.5 billion in 1996, while internet-related investments more than tripled to $3.5 billion over the same period.

In the fourth quarter alone, venture capital investments jumped 11 per cent to $3.7 billion, and 713 companies received new funding.