TFG Venture Capital, the German early-stage high-tech investor, signalled continued hard times for European venture capitalists with a writedown of 40% on its portfolio in the third quarter of this year.

The firm, one of the first to release results for the quarter ended September, said its preliminary accounts record a writedown of €32m ($32m), from €76m to €44m in its portfolio. Other early-stage investors' portfolios are subject to the same economic conditions and can expect similar deterioration.