Venture capital flowed into San Diego County during the year's first half in amounts not seen since the technology boom. And information technology companies pulled in a near-record surge of capital, taking over the dominant role usually occupied by health care.

These findings, suggestive of increasing venture capital interest in the county, were listed in a report released Monday by Ernst & Young LLP and Dow Jones VentureOne. Venture capital is a source of financing for startup companies and new ventures that involve investment risk but offer the prospect for above average future profits.

San Diego County companies received $994 million in the first half, the most since 2001. The first quarter's total of $612 million was higher than any since the third quarter of 2000, when $649 million was invested. In the first quarter of 2006, $300 million was invested locally.

The total dropped to $382 million in the second quarter, still higher than most previous quarters in recent years. In the second quarter of 2006, $265 million was invested.

Combined, these quarters made for a very strong half-year, said Mike Schoenfeld, Ernst & Young's venture capital advisory group leader for the Pacific Southwest.

"That's looking pretty good (in the second quarter) when you're just coming off a tremendous Q1 (first quarter) '07," Schoenfeld said. "Q2 should be very, very small, presumably, because you had so many deals close in Q1. But Q2 held its own."

Nationwide, venture investment rose to $7.4 billion in the second quarter, an 8 percent increase over the same quarter last year. It marks the ninth consecutive quarter of rising venture capital investment.

San Diego County's information technology investment in the second quarter reached its highest level since 2001. From $44 million in the first quarter, information tech funding jumped to $252 million. The last time information technology exceeded that total was in the first quarter of 2001, when $297 million was invested.

San Diego County's health care investment fell from $540 million in the first quarter to $124 million in the second quarter. Health care, which includes biotechnology, usually dominates local venture investments.

Information technology is gaining popularity because it's a focal point of converging technologies such as media and information services, Schoenfeld said. These companies also don't have to deal with the long product development times and heavy regulatory burden placed on health care companies, he said.

"It's very easy to fund a company that doesn't have to deal with a ton of research and development, that can get a product on the market a lot quicker," he said.

- Contact staff writer Bradley J. Fikes at (760) 739-6641 or bfikes@nctimes.com.