Venture capital funding is on the rise, as the dollar volume and the number of companies funded rose double digits in the second quarter.

Some $2.1 billion in venture capital poured into private companies in the spring months, with nearly half of those funds going into the Internet sector, according to a just-released report by Venture capital database VentureDeal.

The results indicate that the Q2 funding, increased 17% compared to the first three months of this year, while the number of new companies funded jumped 30%.

The report is a compilation of data from 366 companies, broken down into four different categories: Alternative Energy/ Clean Technology/ Energy/ Environmental , Biotechnology/ Pharmaceuticals/ Medical Devices, Internet/ Digital Media/ eCommerce/ Software and Telecom/ Wireless/ Mobile/ Communications.
 
The Internet sector a jump of 17% in funds quarter-over-quarter as $939 million was poured into this sector across 170 companies, up 33% from the number of companies funded in the prior quarter.

VC funding in the digital-media sector soared as funding rocketed 150% to $418 million. The e-commerce sector saw $78 million of funds invested in 11 companies in Q2, a 22% increase in both amount of funding and number of companies funded. Software companies showed little change in the dollar volume invested as $689 million went into this sector, up 2% from the first three months of this year. At the same time, 144 companies received funds, up 32% from the previous quarter, suggesting that more startups raised funds, but at smaller amounts than the prior quarter.

What does this mean for you?

The good news is that you may have an easier time finding the funding that you want. More sources out there means more possible capital for you to find, if you are willing to make the pitching rounds. The bad news is that everyone else, encouraged by this news will also be looking for that funding as well. You could end up with a massive amount of competition for the funding you need. This is most likely an issue if you move into software, with companies coming into the VC market faster than new funding.

There is also the issue that too much money can lead to foolish and wasteful spending. The issue of too much funding may not seem like a big problem right now, but consider that getting the cash in hand means you actually have to start running your business, a task you will be new to, and we all know that there is a period of adjustment when you step into a new job role. Gaining that footing, while making large scale fiscal decisions with someone else's money could lead to serious problems.

On the whole what you do with this news depends on the situation you are in, but its always good to know the lay of the land.