Non-U.S. VC investment rose 23% in the third quarter, even as U.S. investment dropped 6% from Q2, according to new global data from industry tracker Dow Jones VentureSource. The data suggests U.S. dominance could be waning.

Following an international slowdown second quarter, VC investment outside the U.S. rose back to levels seen in the first quarter of the year. VCs put $1.8 billion to work in 297 deals in Europe, Canada, Israel, China and India in the third quarter. This is up from $1.5 billion invested in the second quarter, and on par with the $1.9 billion invested in the first quarter. Europe rose 23% from Q2. China saw a 44% spike.

Meanwhile, U.S. investment faltered. Venture capitalists invested $5.1 billion in 616 deals in 3Q, a 6% drop from the $8.2 billion invested in Q2.

However, the long view tells a different story. Compared with Q3 2008, China is down 41% overall. Europe: down 48%. The U.S. is down (a mere) 38%. The international rebound is no match for the international nosedive that was the first half of this year. It’s possible that the Q3 slowdown in the U.S. simply means the Yankees have discovered, a quarter ahead of everyone else what Vator investor Peter Thiel said recently: “The recovery is entirely fake.”

In absolute terms, the U.S. is still the undisputed VC king. VC investment in China in Q3 totaled $465 million. Europe: $998 million. U.S.: $5.1 billion. Earlier this year, the G20 economists agreed that a global recovery hinged in part on boosting investment in Europe. While the latest numbers are encouraging for our Old World brethren, entrepreneurs may want to hold on to their Silicon Valley apartments a few more months before hightailing it oversees.