Technological advances enabling companies to significantly cut costs have led to strong global growth in startup activity, according to a U.S. venture capital pioneer.

“In 40 years in the business, I’ve never seen such a vibrant startup environment,” said Alan Patricof, founder and managing director of Greycroft.

“There’s a lot of money around and there’s an enormous increase in startup activity,” he said.

That is largely due to the practice of cloud computing — running computer programs from remote servers — which has eliminated many of the costs involved.

“Cloud computing eliminates capital expenditure so you can go global very quickly–you don’t have to have extensive servers in every country,” Mr. Patricof said.

As a result, “more firms are downsizing or coming up with a strategy of how to separate private equity, large investments from earlier investments for startups,” he said.