European venture capital deals at 10 year low Consumer service companies raised €1.1bn across 223 deals, a 63pc increase in the total investment compared with 2010. In contrast, IT, typically software firms, saw deal value drop by 50pc to $812m. VentureSource said the accelerating decline in investment across 2011 was due to venture capital firms finding it more difficult to raise funds in Europe and failing to exit from their existing investments. The fourth quarter of 2011 was the year's weakest for mergers and acquisitions and initial public offerings, with 30 European venture-backed companies acquired by other companies and two issuing shares to the public. In all of 2011, 148 companies exited via an M&A, raising €7bn, a 12pc decline in deals and 7pc increase in capital raised.