In 2014, a total of 7,474 venture capital financings with an aggregate value of $86.6 billion were announced globally, according to alternatives data provider Preqin.
This represented an 11% drop in the number of financings that took place compared with 2013, but a 58% rise in the aggregate value of deals.
Preqin research showed that companies in Asia and other regions outside North America and Europe were the main beneficiaries of the increased financing, with the amount of capital invested across these regions up 160% in 2014 compared with deals done in 2013.
The venture capital sector’s recent performance has improved noticeably, Preqin found, with average fund returns in the year to June 2014 reaching 25.9%, higher than any other private equity fund type.
China and India Move Up
North America was again the most prominent region for venture capital investment, with 4,594 venture capital deals in 2014 valued at a total of $53.9 billion, according to Preqin. However, these deals accounted for the lowest annual proportion of overall deal number and value from 2007 to 2014.
The number of investments in greater China (the mainland, Hong Kong, Macau and Taiwan) increased by 15% from 437 in 2013 to 504 in 2014. At the same time, aggregate value surged by 212%, with deals in 2014 valued at $12.8 billion.
In India, the number of deals in 2014 increased by 14%, while the aggregate value rose by 217% to $5.4 billion.
European deals decreased by 18%, from 1,729 in 2013 to 1,416 deals in 2014. Aggregate deal value notched up slightly, from $9.1 billion to $9.2 billion.