Companies made $1.3 billion in venture capital investments private companies in 390 deals in the first half of 2007, according to a recently released report from PricewaterhouseCoopers and the National Venture Capital Association, the Washington Business Journal reported.

Companies make strategic investments in firms alone or alongside venture capital funds to get a better understanding of new technologies and often a closer look at the companies receiving the money while deciding whether to acquire them. Large public technology companies such as Intel Corp., International Business Machines Corp., Siemens AG and Nokia Corp. have internal venture capital groups or close affiliations and major investments in funds that focus mostly on a specific area of expertise.

Corporate venture capital groups participated in 21.4 percent of the deals and invested 9.2 percent of the total dollar amount in the first half of 2007, according to the report, representing the highest level of participation since 2001.

The corporate venture investment through June 2007 was greater than the $1 billion put into 352 deals in the same period in 2006, accounting for 19.8 percent of all deals and 7.5 percent of dollar volume.

For the first half of 2007, investment was strongest in the software, biotechnology and medical devices and equipment sectors.