New data released by the EVCA illustrates the stuttering recovery underway in the European venture capital market. The damage done to valuations since the beginning of the credit crunch and the near shutdown of public markets in the latter part of 2007 has had a clearly visible drag on what was shaping into a decent recovery. 2007 saw the pooled internal rate of return drop for the first time since 2003. But it is not all bad news. The best performing funds are still delivering: the pooled net IRR of the top-quartile venture funds as of December 2007 was 14.9 percent.