VENTURE capital group 3i has invested £215.8m in 37 North-East businesses in the past year.

The investment ranged from start-ups and early stage businesses to larger transactions spread across traditional and technology industries.

The news came as 3i reported pre-tax profits of £120m, compared with £119m in the previous year.

The poor results were a result of tumbling technology shares, which wiped millions off the group's investment portfolio. The collapse of stock markets on both sides of the Atlantic knocked £676m off the portfolio in the year to March 31.

The FTSE Tech Mark index plunged 55 per cent during the year while the tech-laden Nasdaq Composite collapsed by 60 per cent in the US.

3i's chief executive Brian Larcombe said the coming year would be challenging, but added: "This is not a time to be shy.

"We have the capabilities, in the strength of the network, our brand and our people, to continue to out-perform."

But he said: "The short-term economic outlook remains uncertain and we are planning on the assumption that there are no significant improvements in the corporate outlook or the quoted markets in the current year."

3i's return on investments in the UK was £81m, driven by profits on selling investments.

The company said it had invested more than £1bn in 328 UK companies.

Robin Jones, 3i director at the Newcastle office responsible for the North-East, said: "We are committed to investing in the best businesses in the North-East and across the North as a whole. During the year we provided funding across the full range of deal types, sizes and sectors."

The largest deal undertaken by 3i's Newcastle office during the year was the £304m management buy-out of Peter Black Holdings, supplier of healthcare accessories.

During the year, the office followed an initial investment of £2m in software firm My Business with a further £4.8m.

Other technology deals in the North-East included the start-up of Exportsite, a company providing a range of on-line and off-line services to make exporting easier.

Mr Jones said: "There is no shortage of opportunities in the North that are ripe for venture capital funding from 3i and we will continue to work with the most ambitious management teams in growth areas."