Venture capitalists will largely direct their investments to the greentech and biotech industries in the coming year, while China and India remain hot destinations for venture funds, according to a recent survey by the auditing firm KPMG.

When 350 venture capitalists, entrepreneurs, corporate buyers, investment bankers, and research analysts were asked in a KPMG poll to identify the industry sectors that would receive the most capital over the next two years, 24% indicated greentech/cleantech, which was followed by biotech/pharmaceuticals at 15%. Internet services were cited by 13% and mobile technology by 11%.

According to the survey, 51% of respondents indicated they expect venture capital activity to continue rising in 2008. Some 34% said investment activity will at least remain the same in the coming year and fewer than 12% anticipated a decrease in investment volume.

Outside the US, China and India were the overwhelming investment favorites of 29% and 23% of the respondents, respectively. Further, 64% of respondents indicated that China and India are the most attractive locations for entrepreneurs to find funding, while 61% of those surveyed expect both to have increased IPO activity over the next two years.

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Venture capitalists will largely direct their investments to the greentech and biotech industries in the coming year.