China's venture capital (VC) market continued to improve from last year's retreat, with the number of deals signed growing in the second quarter.

Eighty-nine VC deals were disclosed during the April-June period, which was 20.3 percent more than the previous quarter, data provider ChinaVenture said in a report on July 8.

The amount of money involved in these deals, however, declined slightly to $492 million from the first quarter. "The falling volume suggests investors remain cautious about their picks," said Feng Po, an analyst at ChinaVenture.

Internet companies accounted for the biggest share of VC deals made in the second quarter, with 21 investments disclosed, according to ChinaVenture.

Telecommunications topped in terms of investment volume. The industry saw VC deals worth $137 million reached in the April-June period.