VC investment in Europe has recovered after a record low in the second quarter but we’re not out of the woods, says Dow Jones VentureSource. Investors put $998 million (€730 million) into 201 deals in Europe overall. This is a 23% increase from the previous quarter, which was the lowest on record since Dow Jones VentureSource began reporting on the region in 2000. The UK was the No. 2 destination for venture capital behind the U.S. in Q3 with $393 million (£240 million) spent on 67 deals.

France had its worst quarter of 2009 and dropped 58% from the same period last year (55 deals), while in Switzerland, investors put $80 million (€59 million) into seven deals, on par with the previous quarter but still down on a year ago. Capital investment in Germany plummeted. Sweden had its best quarter of 2009 though venture investment was down 22%. Spain saw a dramatic 86% drop from the same period last year. Investment in the Netherlands rose 41% from the same period last year. It seems Amsterdam has startup fever.

Capital intense “later stage deals” have claimed 46% of