European VC investments in media and technology fell by a big 69 percent from Q1 to Q2, according to new LibraryHouse data. It was down from €330 million to €102 million, after Q1’s 90 investments slumped to 63. But LibraryHouse explained Q1 was particularly strong and, if it weren’t for that period’s blip, the number of investments is the same as 2007 Q4.

“All is not lost,” it said. “There is hope that the (economic) impact will prove to be less significant (than in other sectors)”. And mediatech businesses are “less cash-hungry” than the likes of biotech and cleantech, having required 22 percent less funding to reach exit compared to non mediatech companies. “That should mean (they) are seen as a sound investment, especially at a time when the credit crunch should favour early-stage venture capital.”

There’s even optimism on advertising: “Fundamentally, digital media remains attractive even in a consumer downturn, mainly because much of the revenue is derived through advertising. Whilst advertising itself takes a hit, losses are pulled from sectors which are already struggling, such as print. Until an equilibrium is attained, wherein percentage ad-spend online is representative of leisure time spent online, this trend is likely to continue, to the detriment of traditional media.”