Benchmark Capital, the early stage venture capital fund, is releasing a third of commitments from its European fund back to limited partners, reducing the fund to $500m (€545.9m), because falling valuations have lowered the fund's capital requirements.

The move follows similar fund reductions from US venture capital firms Accel Partners, Charles River Ventures, Kleiner Perkins Caufield & Byers, Redpoint Partners, and Mohr, Davidow Ventures. The firms found it difficult to invest their billion dollar venture funds as there are fewer deals, and companies are more reasonably priced than during the boom when the funds were raised.