London -- According to VentureOne's latest report, venture capitalists
invested more than 792 million euro (£533.5 million) in European
companies in the third quarter of this year. While the figure indicates a
slight increase compared to the quarter previous, it also shows a 6%
decrease compared to the same quarter last year, when more than 848
million euro were invested. Deal flow fell to 224 deals in the third
quarter from 247 deals in the second and 281 deals in the same quarter
last year. Total spending so far this year is down 7% compared to 2004.
On a positive note, seed and first-round deals (86) made up 38% of
total deal flow, its largest percentage since the fourth quarter of 2001.
"This renewed interest (in early stage activity), coupled with the larger
capital directed toward later stage companies that may be preparing for
exit, is a function of the positive opportunities we have noticed in the
liquidity market in Europe, particularly for IPOs," said Ernst &
Young's Gil Forer.