Arlington, Va. - Venture capitalists invested $7.1 billion in 922 deals during the first quarter, according to a report released on Monday by PricewaterhouseCoopers and the National Venture Capital Association (NVCA).

The dollar figure was down 8.5% from the previous quarter, with 11 of 16 industries tracked experiencing a decrease.

Despite the decline, the quarter still saw the fifth highest investment level since 2001.

"Despite the current economic downturn in the United States, venture capitalists are still putting money to work across multiple industries and stages of development," said Mark Heesen, president of the NVCA.

"We do not expect to see significant declines in investment levels in the coming year. However, the dollars going to later stage investments could increase if the IPO window remains closed for an extended period of time and venture capitalists have to sustain companies longer than expected."

The biotechnology industry narrowly edged software as the No. 1 industry sector for the quarter, due to a 9% drop in funding for software companies.

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