Wednesday 28th Jul 2010
Market News
Funding by European VCs showing improvement
IT sector in particular shows strong growth
According to figures published by Dow Jones VentureSource, European Venture Capital funding in Q2 has improved sharply from this time last year. At that stage, funding in Europe had reached a record low.
The main growth area, according to Dow Jones, was Information Technology, which saw particularly heavy losses during the economic downturn. It has been 2 years since IT registered as the largest sector for industry investment in Europe, and in Q2 grew by 58% to $427.7 million. An increased deal flow to 13%, as well as a 69% increase in year on year investment, suggests a turn around.
In terms of regions, the UK increased its share of total European investment from 27% to 32%, whilst France decreased from 26% to 21%. Germany came in third place as investment grew by 138% from this time last year to €186 million. In Israel the situation was increasingly positive, with a funding tally of $474.7 million, the highest since Q3 2008.
While investment levels have improved, it is clear that all is not recovered as totals remain low by historical standards.
