The latest numbers from PricewaterhouseCoopers and the National Venture Capital Association show third-quarter investment in New York rose 22 percent over the last year to $335 million. More than 60 percent of those deals were early or seed stage investments, which came from the city’s active Angel community and a new generation of VC firms like Betaworks and Union Square Ventures.

Many of New York’s hottest companies have also seen their latest rounds led by outside investors. Last month advertising platform AppNexus secured a $50 million round led by Microsoft, and in June the location-based service Foursquare received $20 million in Series B funding from the California-based Andreessen Horowitz. Boston VCs have been especially active with Matrix Partners, Spark Capital and General Catalyst, aggressively adding New York companies to their portfolios.

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For the music industry, the mobile phone, not the Internet, is becoming a huge driver of sales as India’s 670 million wireless subscribers slowly become accustomed to using their handsets for more than just calls. Mobile phones aren’t as susceptible to digital piracy as PCs, because wireless carriers can tightly control what content they sell.

Sales of ringtones and songs on phones already make up about 30 percent of the Indian music industry’s 7.5 billion rupees ($168 million) in total revenue and are expected to account for two-thirds of an 18.7 billion rupee market in 2012, according to PricewaterhouseCoopers. At that time, Internet music will still only be a 400 million rupee market, or about $9 million. The rise of mobile music sales is happening as sales of CDs and cassettes are declining sharply year after year.

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The online ad business, excluding mobile ads, is set to expand to $34.4 billion in 2014 from $24.2 billion in 2009, according to the report, which PwC plans to release Tuesday.

Newspapers, meanwhile, continue to suffer from a decline in advertising revenue. According to numbers released by the Newspaper Association of America earlier this year, print advertising revenue dropped 28.6 percent in 2009 to $24.82 billion. The PwC report estimates that print advertising in newspapers will hit $22.3 billion by 2014.

“Although the Internet did not fully escape the impact of the recession, its decline in the United States was much less severe than that of other advertising media,” the PwC report notes.

Shifts in consumer behavior, potential for inventory on the Internet, and increased broadband penetration in the U.S. are key factors in PwC’s projections, according to David Silverman, a partner at PwC.

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In 2009, venture capitalists invested $17.7 billion–37 percent less than in 2008 (see chart below; click to enlarge). And they funneled that money into just 2,795 start-ups–37 percent fewer than the year prior. The sectors where these declines hit hardest: Software, clean tech and biotech.

“The venture capital industry had no choice but to slow the investment pace in 2009,” NVCA president Mark Heesen said in a statement. “The weak exit environment resulting from an unstable public market combined with a challenged limited partner base sent a strong message to the venture community to pull back the reins–and the VC’s listened.”

While the market for VC investments in 2010 is likely to remain tight, the situation is improving. Said Heesen: “Now that the economy has begun to show signs of improvement, we expect to see dollars flow more freely back into those sectors that offered the most promise before the recession began–clean technology, life sciences and IT. The seed and early stage pipeline needs replenishing across all industries and the health of the startup community in the next decade will be dependent upon more robust first-time financings. 2010 should be the year to begin that process in earnest.”