Even as signs emerge that the stock market is peaking, investors are pouring money into venture capital funds at the fastest rate since the ill-fated dot-com boom that reached its height in 2000. The lure: venture capital investments have brought investors returns far superior to the overall market.

Hot VC Sectors Already this year, venture capital funds raised $22.9 billion during the the first six months compared to $28.2 billion during all of 2015. The pace was especially brisk in the first quarter of 2016, with about $13.0 billion raised. Large investors have been attracted by a 10-year average annual rate of return of more than 4 percentage points above that produced by the S&P 500, according to the Wall Street Journal.