(FORTUNE Magazine) – After a horrendous four years, during which the amount of money raised shriveled some 70%, venture capitalists are finally seeing a strong pickup in funds (see chart). The $1.16 billion they've gathered from partners in this year's first half is already greater than monies raised in all of 1991. The rise is due to offerings from follow-on funds. Also known as ''serial funds'' for their successive roman numerals (e.g., Smith I, Smith II), these offerings from established firms are hogging all the money because of their successful track records and because institutional investors who can pony up millions of dollars for partnerships have turned conservative. One of the largest funds this year is Burr Egan Deleage & Co.'s Alta V, a fund in Boston that raised $160 million. Peter C. Wendell, a venture capitalist who lectures on the subject at Stanford's business school, says established firms bring more comfort to their limited partners. And comfortable is what they want to be. Venture Economics, a consulting firm in Newark, New Jersey, notes that in 1985, 60% of the venture capital raised went into follow-on funds; in 1991, 95% did. Where is the money going? About 25% of it is headed for software and related services. But health care and telecommunications are also grabbing big bites.

CHART: NOT AVAILABLE CREDIT: FORTUNE CHART/SOURCE: PRIVATE EQUITY ANALYST, NEWTON, MASS. CAPTION: VENTURE CAP JUMPS