The Federal Government has injected $80 million into four Australian venture capital funds, with the aim of stimulating innovation and accelerating commercialisation in early stage Australian companies.

The amount of money people put into U.S. venture capital investments nearly returned to pre-recession levels in the second quarter, with most deals going to information technology companies, according to Dow Jones VentureSource.

Fast-growing Australian software company Atlassian has taken a $US60 million minority investment from US-based venture capital firm Accel Partners, with a long-term view to a public listing in the US.

Unlike other markets where venture capital firms may actively chase investments in sectors perceived to be "hot," Australian firms tend to steer clear of fads in technology or other industries, say longtime observers.

According to a group of venture capitalists, technology trends to watch for range from social networking to health maintenance and an emergence of new companies.

Intel is looking to invest in cloud computing and mobility as the company tries to meet its US$200 million investment commitment in U.S. companies over a two-year period, an Intel executive said on Monday.

Having Cisco pedigree plays a large role in whether a technology business plan gets funding, venture capitalists say.

It may seem like the worst of times for tech companies trying to secure investments from venture capital firms, but the darkest days may be yet to come, says longtime venture capitalist Michael Fitzgerald.