Venture capital investments in Hungary are expected to decrease sharply in 2001 as investors scale back their commitments amid the global slump in private equity investments, according to the Hungarian Venture Capital and Private Equity Association (HVCA).

Private equity firms have invested only $8m (€9.4m) in Hungarian companies between January and April 2001, according to a survey carried out by the association. That compares with $103m in 2000, $41m in 1999 and $59m in 1998. Although the association said the 2001 figure would increase sharply between now and the end of the year as companies complete deals in the pipeline, it conceded that activity was slowing sharply.