Private equity companies invested a record €11.5bn ($9.9bn) in European technology companies in 2000, but investment this year is set to decline as venture capital houses continue to scale back and refocus their commitments to the sector.

A report by PriceWaterhouseCoopers which includes data from the European Venture Capital Association found that investment in European technology companies rose 68% in 2000 in terms of value from a year earlier. The number of investments rose 34% to 6,543.