Venture capital firms continue to make a steady stream of investments in network start-ups, particularly software, Internet and wireless technologies.

During the second quarter, VCs invested just under $3 billion in network start-ups, completing 423 deals nationwide. This follows on the heels of $2.8 billion invested in 399 network start-ups during the first quarter.

Overall, early-stage investments in the network industry are holding steady. For the last eight quarters, VC investments in network hardware, software and telecommunications services have ranged between $2.5 billion and $3 billion, with anywhere from 350 to 435 deals completed.

These figures are from the quarterly MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, which is based on data from Thomson Financial. Network World receives a special cut of the MoneyTree report that is focused on the network industry.

"We’ve seen a relatively flat quarter again," says Tracy Lefteroff, global managing partner of the venture capital practice at PricewaterhouseCoopers. "We haven’t really recovered from the meltdown following 2001."

At its peak in the second quarter of 2000, VCs invested $18 billion in network-related ventures.

For more on this, and a list of factors holding back networking start-ups, please go here.