Investment in European venture capital has plunged nearly two-thirds in the last year to €4.4bn ($4.7bn), as firms struggle to invest the record amount of capital they raised in the technology boom, new research reveals.

The figures from VentureOne, the data provider, and Ernst & Young, are in stark contrast to the €20.6bn committed in 2000. Investment in UK ventures fell to €1.5bn, which is half last year's total, and only 20% of the level in 2000.