The data suggests that European VC investment is holding up better than in the US, claims research institute Library House, which compiled the data.

Investment in Europe declined just 2.5 per cent on the same period last year, according to Library House figures. In the US the decline was nearly five per cent, to US$7.1 billion (£3.7 billion), according to PricewaterhouseCoopers.

John Owen, CEO of Library House, comments: ‘It is very encouraging to see Europe rebound in the first quarter of 2008 in terms of investment. With the US in decline it illustrates the strength of Europe and our portfolio companies.’

However, the number of European deals in the first quarter of this year declined by nearly 15 per cent on the same period last year, to 410, while deal numbers in the US increased seven per cent to 922.

In Europe, cleantech investment cooled off in the first quarter, with the amount VCs invested in the sector halving to €122 million compared with the fourth quarter of 2007.

Investment figures for the first quarter of 2008 may be adjusted as more deals are disclosed.