Venture capitalists continue to invest heavily in Southern California, investing the largest amount in the area since 2001, a report says.

The Quarterly Venture Capital Report released by Dow Jones VentureOne and Ernst & Young LLP reported that overall U.S. venture capital investment climbed 8 percent to $8.1 billion marking the ninth consecutive year-over-year growth and the highest quarterly investment total since the first quarter of 2001.

As a whole, the state of California dominated the venture capital activity for the quarter, netting 44 percent of both the nation’s deal flow and total capital invested. While still in the lead, the Bay Area saw declines for the second consecutive quarter, as deal flow fell 13 percent year-over-year. Information technology companies received the most deals followed by business and consumer retail services providers.

However, companies based in Southern California closed 78 deals, worth more than $961 million, marking the greatest quarterly deal volume since 2001 and the third quarter in a row the region landed more deals and more capital than New England. The New England area saw a 28 percent increase in the amount of venture capital invested, with $849 million raised in 76 deals.