The future of ETF Group, Switzerland's largest direct investment venture capital firm by number of staff, has been cast into doubt by one of its owners as the meltdown in high-tech investments continues to take its toll on the private equity industry.

CdbWebTech, the Italian investment firm founded by Carlo de Benedetti, said in its quarterly financial statement for the first quarter of 2003: "ETF suffered greatly from the fall in investment values and is now in a critical situation without adequate financial resources to continue to support its own investments."