PRINT THIS PAGE Seasonal slowdown hits European venture investment in the third quarter20/11/2003. Source: AltAssets. 
 The value of venture capital investment in European companies fell by 20 per cent in the third quarter of 2003 compared to the previous quarter, according to the Ernst & Young/Venture One global venture capital survey. The volume of investments fell by 25 per cent in the same period.
But although investment activity declined overall in Europe, the UK had a 52 per cent increase in total investment to E277m, representing almost half of third quarter investments in Europe.
The report attributes the fall in overall European venture investment to seasonal investment patterns. ‘European vacation patterns have conspired to reduce third quarter deal flow for the past three years,’ said Steve Harmston, VentureOne’s director of European research.
‘It’s evident in this quarter when in August only half as many deals were completed compared to July and September. With investors absent for as long as one month in the quarter, it’s difficult for deals to get accomplished, particularly in bringing together large syndicates of investors, who would be investing in more substantial financing rounds. The UK was less affected by this seasonal factor,’ Harmston concluded.
The quarter’s two largest deals were Arrow Therapeutics, a drug developer based in London, which raised E30m, and Ardana Bioscience, a developer of reproductive health products in Edinburgh, which raised E29m. Investments in these companies helped make the biopharmaceuticals sector the most significant segment for venture activity, raising E195m.
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