Venture in Europe gets a bad rap, eclipsed by venture activity in Asia and the United States. That's what makes the latest investment figures so interesting. Venture capital flowing into European companies hit a four-year high, topping $5.3 billion last year. And instead of VCs deploying capital in tried-and-true sectors, the latest numbers from Dow Jones VentureOne and Ernst & Young show investors taking more risks in early-stage rounds and emerging industries.

As in the United States, investment in the communications and networking and alternative energy sectors climbed last year. Communications and networking investments almost doubled, reaching $640 million. Energy investments climbed 14%, and semiconductor investments rose 33% to $540.7 million. The number of deals declined 27% from last year, but the median deal size rose to about $2.9 million, the highest since 1999. The United Kingdom saw the most money and biggest deal: semiconductor firm Plastic Logic, taking $107.8 million in a later-stage round.