New entrants are flooding into US venture capital at the fastest rate since the dotcom boom.

Fifty two firms were founded in the first nine months of this year, compared with 23 last year, according to data compiled for Financial News by the National Venture Capital Association. They raised a combined $4.4bn (€3.5bn); nine new funds accounted for 17% of venture capital raised in the third quarter, according to the NVCA and data provider Thomson Financial. Bondurant French, chief executive of Adams Street Partners, which invests in venture capital firms, said: "Venture capital has been the beneficiary of an asset-allocation sea change in which a lot of people have been changing their allocations to alternatives." The firms represent the highest number of entrants to US venture capital since 2001. Many focus on India, China and Dubai. Newcomers include Contour Venture Partners, a New York-based firm founded by veterans of Flatiron Partners and Promontory Financial Group, and India-focused fund Formative Ventures.