A slump in information technology deals led a sharp decline in Europe’s venture capital activity in the third quarter, a new report said.

Venture capital investment in Europe fell 5 percent to $1.5 billion on 209 deals, the second lowest total on record, Dow Jones VentureSource reported Wednesday. That compared to investment of $1.6 billion on 245 deals in the year-ago period.

IT accounted for much of third quarter’s decline with just 85 deals worth $493 million completed. That was 23 percent less than the $637 million invested in the prior year’s quarter.

"Much like in the U.S., the Europe's IPO market is virtually nonexistent and the turmoil in the broader economy is keeping many corporations from acquiring venture-backed companies," Jessica Canning, director of global research for Dow Jones VentureSource, said in a prepared statement. "This is putting pressure on venture capitalists who are being very selective in the number of deals they're doing and kinds of companies they're backing. The pullback in the European IT industry is a trend that is being mirrored closely in the U.S., where IT deal activity also reached its lowest point in more than a decade during the third quarter."

The bright spot in the venture capital landscape was the energy and utilities industry, which attracted a record $245 million in 14 deals. Almost all of the funding went to renewable energy projects, including $153 million for WinWind, a Finnish manufacturer of wind turbines.

Health care deals slid 13 percent to $459 million in 58 deals as investment in biopharmaceutical firms stayed flat and medical device companies lost ground.

Among the European centers of venture capital, investment: fell 27 percent in the United Kingdom to $401 million; declined 18 percent in Germany to $168 million, but climbed 13 percent in France to $270 million on the strength of health care investments.