Private equity invested a record amount in Europe last year despite the impact of the liquidity crunch which has seen the biggest end of the market collapse, but the industry's trade body has urged the largest firms not to neglect venture capital and entreprenuerial deals.

Speaking at the European Private Equity and Venture Capital Association's 25th symposium, Neil Cross, one of EVCA´s first chairmen and former 3i executive, said: "EVCA was launched in 1983 and received seed finance from the European Commission to encourage innovation in private equity. Since then many larger firms have stopped doing smaller deals. I do have a concern that this is to the detriment of innovation in Europe."