Seed financing, the earliest stage of financing that politicians across Europe have identified as one of the most important drivers of economic growth, has fallen to levels not seen since 1997, according to the European Private Equity and Venture Capital Association (EVCA).

The EVCA's figures show the amount of investment in seed financing opportunities across the whole of Europe fell to just €27m ($27m) in the third quarter of 2002. This is the lowest level so far this year. The year's total is now expected to fall far short of the €169m invested in 1998, although it has already beaten 1997's total.