Geocapital Partners, the US-based venture capital firm, has abandoned its plans to raise a $500m (€525m) technology fund, despite securing commitments totalling $250m. Half of the fund had been earmarked for European investment.

In a letter to investors, some of whom had signed subscription agreements, the firm said: 'The aftermath of the equity mania related to technology and the internet makes today an unattractive time to take on the task of putting your money to work.'