A new set of figures has backed up LibraryHouse’s recent finding that European VC investments slowed in Q2. Dow Jones (NYSE: NWS) VentureSource says VCs invested in 167 startups in the period - that’s 42 percent fewer than the same period a year ago and the worst quarter since VentureSource began tracking in 2000. Cash doled out fell 35 percent to $1.3 billion. The UK is faring worst of all, with VC dropping 49 percent; IT and healthcare sectors declined most.

SEE ALSO: EU Media Investments Return To ‘07 Levels, Sector Still Healthy: Resesarch

It would be easy to blame the economy. As yesterday’s newspaper earnings showed, the UK economy in particular is sailing choppy waters. But VCs quoted in the NYT are optimistic, instead pointing the finger at US uncertainty and counterparts taking time to ready new funds, as Index is doing. Mark Tluszcz of Skype and Nimbuzz backer Mangrove: “I have never seen a time in Europe when there are so many good, young companies being started.”

LibraryHouse this month said European media and technology investmentsfell by a big 69 percent from Q1 to Q2 but said the previous quarter was an unexpected blip, meaning the overall expenditure is flat.