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Venture capitalists continue to desert the US technology sector, according to research published by PricewaterhouseCoopers and VentureOne. PwC reckons that this year $30 billion will be invested in tech companies, compared to $89 billion last year.

Telcos, infrastructure companies and service providers are bearing the brunt, with investment falling from $6 billion to $1.7 billion.

"Many venture capitalists have taken advantage of the slowdown to take holidays," says Pwc's Tracy Lefteroff in the FT.

The FT warns that the lack of VC investment could stifle technology innovation, which many will find exquisitely ironic.

Many technology innovations were developed without any VC money whatsoever: it's Government largesse that contributed to the development of the Internet and the World Wide Web, for example, while the great speculative bubble of recent years was caused by VCs pouring billions into companies without a realistic business plan, on such technological innovations as FedEx'ing pet food around the country.

But then, they would say that, wouldn't they? ®

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