Venture capital investment plummets

Link: M&A rises impressive 14% in UK

Figures released yesterday by Ernst & Young and VentureOne revealed venture captital investment fell by just under a quarter between 2002 and 2003.

The amount invested was down 24% year on year from €1.5bn to €1.1bn, a stark contrast to the heady days of 2000 when more than double that amount was raised in half of a single quarter.

But the news was not all bad. According to the study, the UK venture capital market enhanced its position as the largest in Europe, accounting for 32% of total funds invested. And the report said the outlook for 2004 was much rosier.

Stuart Watson, head of Ernst & Young’s venture captial advisory group in the UK, said: ‘We consider that the more healthy signs of recovery in the US will show through into the UK market and then subsequently the rest of the European market in 2004.’

Related reading

PwC office 2