Venture capital investment in UK and Irish technology companies in 2008 hit the highest level since the dotcom boom ended in 2001, apparently shrugging off the pressures of the economic downturn.

Ascendant, an adviser to smaller companies looking to raise money, has calculated that just over £1bn was invested in the sector last year – up 15 per cent on 2007 – in 253 deals, compared with 242 deals in 2007.