The device industry surpasses, for the first time, the pharma industry in attracting VC funds.

Investors parked $8.4 billion in 738 healthcare company deals, marginally lower than 2010 numbers, when they invested $8.3 billion in 747 deals. Of this, biopharmaceuticals brought in $3.9 billion for 302 deals, while the medical device industry saw 290 deals raising $3.3 billion. 

According to a MoneyTree Report today, the VC investments grew strong and steady across healthcare in 2011, with medical devices finishing a close second to biopharmaceuticals in dollars invested and healthcare IT seeing a substantial increase over the previous year. This year has been the first that the device industry has surpassed the pharma industry in attracting VC funds. 

Healthcare IT scored $633 million for 86 deals, a 26 percent increase in deal activity and a 22 percent increase in capital raised over the previous year for this segment. The increasing interest in EMRs, internet and mobile applications, and information management tools, have been attributed to this growth. 

The MoneyTree report is published by PricewaterhouseCoopers LLP and the National Venture Capital Association (NVCA), based on data from Thomson Reuters.

In terms of regions, Silicon Valley topped VC investments for the full year with $11.6 billion, with New England following a distant second with $3.2 billion and New York Metro at $2.7 billion. 

“Venture capital investing in 2011 exceeded 2010 levels and ranks in the top three years for VC investing in the past decade,” Tracy T. Lefteroff, global managing partner of the venture capital practice at PricewaterhouseCoopers, said in a statement. 

By industry, Cleantech rose 12 percent in both dollars and deal volume in 2011, bringing the year’s total to the highest level ever recorded at $4.3 billion going into 323 deals, compared to $3.8 billion going into 289 deals in 2010. Cleantech investing accounted for 15 percent of all venture capital dollars in 2011 compared to 16 percent in 2010.