Falling investment in the high-tech sector accounted for 75% of the €2.4bn ($2.2bn) decline in European private equity investment for the first half of 2001, compared with the same period last year, according to a new survey from the European Venture Capital Association.

Investment in the high-tech sector fell 40% to €2.6bn in the first six months of this year, compared with €4.4bn invested in the first half of 2000. With only a 12% decrease in the number of high tech companies backed, the average investment size fell over 30% to €1.3m per company during the first six months of this year, compared with €1.9m for the first half of 2000.