Paris has officially surpassed London to become Europe’s leading startup hub, marking the first time the French capital has topped the rankings in Dealroom’s global startup ecosystem index. The report places Paris fourth globally, just behind the Bay Area, New York, and Boston, and ahead of every other European city.
The ranking assessed 288 cities worldwide using metrics such as venture capital funding, startup valuations, unicorn count, patent output, and university spinouts. Paris edged out London, Stockholm, Munich, and Amsterdam to claim the top European spot.
While London still raises more capital overall—$11 billion in 2024 compared to Paris’s $5.9 billion—it’s the pace of Paris’s growth that’s turned heads. Between 2017 and 2024, Paris’s startup ecosystem saw a 5.3x growth in combined valuations, reaching $286 billion, versus a 4.2x rise to $593 billion for London. That acceleration, Dealroom notes, is being driven in large part by Paris’s booming AI sector.
Paris’s Rise as an AI Powerhouse
Nearly half of all VC investment in Paris last year went into AI startups. Landmark deals included Mistral’s €468M ($526M) Series B and Poolside’s €445M ($500M) Series B, both generative AI leaders.
Paris also boasts a deep talent pool, thanks to world-renowned universities like École Polytechnique, which produces many of Europe’s most in-demand AI professionals. The city leads in deeptech patents too—with 133,000 patents, compared to London’s 48,000. When it comes to university alumni founders, Paris is again ahead with 9,500, while London trails at 5,300.
These strengths have helped Paris rank fifth globally as an AI hub—the only European city to crack the top five.
“Paris has been closing the gap,” Dealroom writes. “It has been growing faster than London in enterprise value, in VC, and in unicorns.”
Experts say London and Paris have evolved into twin engines of Europe’s tech landscape. London remains dominant in fintech, with global standouts like Revolut and Monzo, thanks to its regulatory edge and financial heritage.
Paris, meanwhile, has emerged as Europe’s epicenter for AI innovation. “Paris’s investment in AI has seen some of the most exciting European talent emerging across the ecosystem,” said Remus Brett, partner at LocalGlobe.
Macron’s “Startup Nation” Vision Paying Off
Much of Paris’s success can be traced to France’s pro-innovation policy agenda, spearheaded by President Emmanuel Macron. Since 2017, Macron has championed the idea of building a “startup nation,” with government support fueling entrepreneur growth.
Major events like the AI Action Summit, held in Paris last February, have put the city on the global tech map. Macron’s Choose France summit, designed to attract foreign investment, also continues to pay dividends. This year’s edition secured €20 billion in new funding, including a €1 billion commitment from UK-based Revolut, which will now open its European HQ in Paris.
Despite the momentum, the French startup ecosystem has hit recent turbulence. Political instability and a less business-friendly 2025 budget have created uncertainty. According to PitchBook, French startups raised just €1.4 billion in Q1 2025, a 36.4% drop year-on-year and the worst quarter for VC funding in five years.
Still, the long-term fundamentals remain strong, especially as AI continues to shape the global innovation economy—and Paris is well-positioned to lead.
