Early-stage companies remain gloomy in the face of market uncertainty, but there are signs the worst is over with confidence returning to the level of July 2002, according to a survey by 3i, the pan-European venture capital firm.

The 3i European Barometer Index, which surveyed 556 3i-backed companies and others of a similar standing, had recovered overall from a record low of -114 last October to -73 in January 2003 - the same as six months previously.