THE amount of venture capital for Irish companies dropped by 29 per cent last year against a 2 per cent rise throughout Europe, a new survey has shown.

Following a record year for fundraising in 1994, the European Venture Capital Association (EVCA) survey found that indigenous companies raised £16 million in venture capital last year, compared with £21 million the previous year.

Venture capital funds raised from banks and pension funds in Ireland went to 33 projects, eight of which were start up companies, according to the survey. Almost 95 per cent of the funds were used to finance expansions of existing businesses, it said.

The sharp drop in the amount of venture capital in Ireland last year is in marked contrast to a 2 per cent rise throughout Europe, according to the survey.

Pension funds provided most venture capital funds, the EVCA says, surpassing banks for the first time as the single biggest source of funding for European industries.