BEIJING, Nov.16 (Xinhua) -- Venture capital investment in Chinas urged 87.4 percent to 677 million U.S. dollars in the third quarter, an industry report said.

Service-oriented sectors were the most appealing as they attracted a record 432 million U.S. dollars and accounted for nearly half of the 59 deals, a report by Ernst and Young and Dow Jones Venture One, a financial information provider, said.

By comparison, the sectors received investment worth 242 million U.S. dollars in the same period last year.

Money flowing into the information industry dropped 23 percent from a year ago to 217 million U.S. dollars and accounted for 24 deals.

"Globally, more and more venture capitalists are pouring funds into service-oriented companies," said Robert Partridge, Managing Director of Transaction Advisory Services and the VC Advisory Group of Ernst and Young.

"These companies have a relatively low capital threshold for investors and can attract a large group of customers within a short time."

Venture capitalism, also known as risk capital, refers to money invested in start-up firms and small businesses that have both growth potential and the possibility of loss.