"The outlook for VC investing and VC-backed companies remains positive as improving economic conditions continue to support the global fundraising environment," EY's report said.
VC funding was at its all-time high in the U.S., Europe and China. Investment in the U.S. hit $52.1 billion, driven by mega deals such as a $1.2 billion dollar funding round in taxi hailing app Uber in December. The U.S. figures mark 47 percent year-on-year growth in funding value in 2014.
Europe's VC investments totalled $10.5 billion, a 27 percent rise from the year before. Meanwhile China saw funding almost triple, hitting $15.6 billion. This was boosted by a $1.1 billion funding round in Chinese smartphone maker Xiaomi.
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Unsurprisingly, the Bay Area in San Francisco retained its dominance with $24.7 billion invested in 2014 into companies in that area, almost double the 2013 figure of $13.9 billion. Beijing shot up to second place from sixth with $7.7 billion of funding.
And it was the consumer services sector – which includes companies such as Uber, Snapchat and India's Flipkart – that drew in the most money with $29 billion dollars invested.
The level of listings backed by venture capitalists grew across all markets in 2014, but Europe was the outperformer with proceeds from public listings hitting $4.7 billion in 2014, a 600 percent increase from the year before. This was driven by the IPO exit of Rocket Internet AG which raised $1.8 billion in the last quarter of 2014, EY said.
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