Figures can be misleading. Take the stats released on Oct. 27 by data provider DowJones Venture Source, which tracks venture capital investment worldwide. During the third quarter of 2009, VCs invested $998 million in 201 deals in Europe, a 23% jump over the previous quarter. That’s pretty good news. But here’s the rub. The third-quarter figure represented a 48% decline vs. the $1.9 billion (split across 312 deals) invested between July and September, 2008.
So what does this all mean? For one, venture capitalists are tentatively putting their toes back into the water, though many remain cautious. According to DowJones Venture Source’s Arno Castanet, “investors [are] spending less, but spending wisely.” Smaller investments focused on well-recognized growth markets is a trend. The top three European sectors garnering VC interest: IT ($425 million invested), Healthcare ($216 million), and energy/utilities ($296 million).
BW: Venture Capital Investment Still Lacking in Europe
