Further evidence of a decline in VC investment emerged this week as new figures show a drop in activity across Europe.
Research from Library House backs up data that points to a fall in investment in the first quarter of this year following a strong year last year.
Nevertheless UK businesses are still the most likely receivers of private equity receiving 33% of European investment, although other countries such as France and Germany are falling in the table.
In the first quarter of 2007 investment fell by €200m (£136m) to €1.4bn (£959m) also there have been several substantial exits producing a net outflow of €627m (£430m).
The research confirms data from Ernst and Young, reported by Growing Business last week, which similarly suggested there had been a fall in VC funding.
Doug Richard, chairman of Library House said: “Despite a dip towards the end of last year, the UK remains in pole position leading the Venture Capital market across Europe.
“Increasing innovation levels and the growing number of entrepreneurs across the UK will continue to support its ongoing position as one of the most flourishing centres in the world for investment.”
“But interestingly it is the US that is taking advantage of the investment opportunities in Europe.
“Whilst the public sector is taking steps in the right direction more needs to be done to grow European venture capital locally.”
© Crimson Business Ltd. 2007
