Atlas Venture is shutting its London office in a blow for the European venture capital industry, which is now left with just a handful of the more powerful US venture capital firms based in the region.

Atlas said in a statement yesterday that in 2010 it will bring all of its operations together at a new office in the Boston area. Peter Barrett, a partner at the firm, said: "Having all of us together in a single location will streamline decision-making and increase overall operating effectiveness."