The European IT industry witnessed a 69% growth in venture capital funding to £334 million during the second quarter of 2010, according to figures published by Dow Jones VentureSource in July.

According to the Dow Jones report, Europe’s IT market was the continent’s largest investment industry for the first time in two years, receiving 31% of all venture capital investments made.

Software was the largest target for funding during the three-month period, but semiconductors also attracted major investment, Dow Jones said.

“It’s reassuring to see European venture investment beginning to bounce back after the record lows of 2009,” said Arno Castanet, research manager at Dow Jones VentureSource. “Investors are refocusing their goals, going back to what they know and investing in areas and industries where they have seen previous success including information technology [and] software.”