Biotechnology has overtaken software as the leading venture capital investment category for the first time in seven years according to third quarter US data from PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association.

Investment in biotechnology companies increased 31% over the second quarter to $873m (€747m), representing an 88% jump over the same period in the previous year. The broader life sciences sector, which includes biotechnology and medical devices and equipment, totalled $1.24bn or 30% of all venture capital investments in the quarter.