Charts: Euro Tech VC Spend Returns To Slow Growth

The investment downturn’s still here, but it’s slowing: Q3 tech VC outlay rose 23 percent from a quiet Q2 — the worst quarter on record — but the total of $998 million (£611 million) in 201 deals is nearly half what was spent in Q3 last year.

According to Dow Jones Venturesource, $1.9 billion was invested in 312 deals in Q308.

Of the spending in Q3 this year, $425 million (£260 million) went to IT companies but, within that industry, Euro software investment reached a record low of $72 million (£44 million). VentureSource found that the median size of European VC deals has dropped 30 percent since Q308 to $2.6 million (£1.59 million) in Q309.

Some good news for British start-ups: the UK was secondly only to the US in terms of tech investment in Q3 with $393 million (£240 million) spent on 67 deals.

Venturesource recorded 297 deals across Europe, Canada, Israel and China — worth a combined $1.8 billion (£1.1 billion) — which an improvement on Q2’s $1.5 billion but down slightly on the $1.9 billion spent in Q1.

Venturesource research manager Arno Castanet says: “In Europe, the lag in the liquidity and fundraising markets has investors spending less, but spending wisely.”

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