We are excited to bring Transform 2022 back in-person July 19 and virtually July 20 - 28. Join AI and data leaders for insightful talks and exciting networking opportunities. Register today!

As Silicon Valley and China see VC funding accelerate, Europe seems to be slipping into a lower gear. According to the latest quarterly numbers from Dow Jones VentureSource, the amount of funding raised by startups in Europe and the number of deals all slid sharply in the three months ending in September.

The 3Q18 Europe Venture Capital report released today showed that VC-backed companies in Europe raised $5.22 billion in Q3, down 21 percent from the same period last year. There were 684 fundraising deals, about 9 percent fewer than Q3 2017.

Those numbers were also down from Q2 2018, with funding falling 26 percent and the number of deals down 18 percent.

Even with Brexit looming, startups in the United Kingdom were still number one by a long shot, raising 43 percent of the total capital in Q3 and accounting for 32 percent of the deals. Still, the $2.3 billion raised by U.K. startups was down 11 percent from Q2, and the 215 deals were down 16 percent.

France ranked a distant second in terms of VC raised, with $679 million, and third in number of deals with 78. Germany was third in amount raised, with $631 million, and second in number of deals with 83.

The news was a bit better for venture capitalists. There were 24 VC funds closed in the quarter, for a total of $4.1 billion raised. That’s up 50 percent from the previous quarter and up 90 percent from the same quarter one year ago.

VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Learn more about membership.