3i, a European PE firm that had played a major role in funding start-ups in Europe and dabbles at times in Asia, has decided to get out of the venture capital business.

A number of bloggers have commented this week on the report that 3i will no longer fund start-ups. The Financial Times reported that 3i is "exiting early-stage finance." The FT added that the move "underlines the woeful state of European venture capital".

Blogger Jonathan Kestenbaum said that the move "created shockwaves in the venture capital world," but that the story was familiar: a private equity firm abandons start-up investment for better returns in the later stages of company growth.

While Europe took the news hard, it is unclear just how profound an impact the departure of 3i from venture capital will have on China. 3i will remain active in private equity deals.