Historically, in compiling data on the levels of venture capital investment in the Washington area, The Washington Post used the quarterly MoneyTree survey compiled by PricewaterhouseCoopers and research firm VentureOne. Starting with the second quarter of 2001, The Post began using data from a different survey compiled by the National Venture Capital Association, the industry's trade group, and the research firm Venture Economics. The Mid-Atlantic Venture Association also participated in the survey.

Begining with the report that covers the fourth quarter of 2001, these two surveys have been combined and their historical data reconciled. Still known as the MoneyTree Survey, it is conducted by Pricewaterhouse, Venture Economics and the NVCA.

This new survey is similar to the one used by The Post for the past two quarters. It includes all venture capital investments made in domestic companies by investors, including venture capital firms, corporate venture arms and investment banks. Investments by private individuals, corporations or government agencies are included in rounds with institutional participation.

This is not an exact science, however. Venture capital firms, as private investing partnerships, operate under no uniform reporting standards. Data for the MoneyTree surveys are compiled from quarterly questionnaires sent to venture capital firms, as well as outside investigation using other private and public sources. All funding deals are verified with the participating venture capital firm and/or the company receiving the funds.

Venture firm participation in the surveys is voluntary, and the data is always subject to additions or changes as new information is received. Updated quarterly investment totals can be in a constant state of flux. Those changes, when they are made, will be represented on The Post's Web site, www.washtech.com.

—Nicholas Johnston