Investment by European venture capital and private equity firms reached €36.9bn ($44.5bn) last year, an increase of 27% over the 2003 total and a 5.4% increase on 2000, the previous record year.

However, the latest figures from the European Private Equity and Venture Capital Association showed that new funds raised in 2004 remained steady at €27.5bn. The flat result should help allay fears of a growing wall of money overhanging the industry, although numbers for 2005 are expected to be significantly higher.