For years, London reigned supreme as Europe’s top tech hub. But now, Paris is emerging as the continent’s new innovation epicenter, according to fresh data from Dealroom revealed at GITEX Europe in Berlin. For the first time ever, Paris has been crowned the “Global European Tech Champion,” overtaking London in startup value creation and ecosystem momentum.
The shift didn’t happen overnight. Over the past 12 to 24 months, Paris’s tech sector has surged, driven by a wave of AI startups, returning founders, and government-backed innovation policies. From enterprise value to venture funding, Paris’s growth trajectory is setting a new standard. While London still pulled in $11.3 billion in 2024 funding, Paris wasn’t far behind at $7.8 billion—its largest year ever. And between 2017 and 2024, the total enterprise value of Paris startups grew 5.3x, outpacing London’s 4.2x.
A turning point came in May 2025, when fintech giant Revolut chose Paris for its Western European headquarters. With a €1 billion investment and over 200 new jobs, the move solidified the city’s role as a rising financial and tech hub. The decision followed a 47% year-over-year growth in French users, making France Revolut’s fastest-growing EU market.
That same momentum can be seen in global tech giants pouring into the French capital. Microsoft is investing €4 billion in local AI infrastructure. Meta, Google, and OpenAI have all launched AI labs in the city. Today, Paris is home to more than 8,000 startups and over 20 unicorns. In 2024 alone, the city recorded 344 venture rounds over $1 million.
Education, AI Talent, and Policy: The Paris Formula
What’s fueling the Paris tech ecosystem rise? A major driver is education. World-class institutions like Paris-Saclay University, the Institut Polytechnique de Paris, Télécom Paris, and elite engineering schools like ENS and Centrale are churning out thousands of AI specialists and engineers annually. Together with top business schools like HEC and ESSEC, they’re feeding a thriving talent pipeline.
ParisTech schools alone produce over 4,000 tech professionals each year. These graduates aren’t just joining existing firms—they’re launching new ones. Mistral AI, for instance, recently raised €600 million to build sovereign AI infrastructure. France now hosts more than 1,000 AI startups, with most headquartered in Paris.
Backing this ecosystem is a pro-innovation government agenda. France’s Tech Visa simplifies relocation for global talent, offering a renewable four-year residence permit. The government also offers tax incentives, including a 30% R&D payroll rebate and IP profit exemptions. Its €2.3 billion AI Action Plan under the France 2030 initiative confirms the nation’s long-term commitment.
At the heart of the ecosystem is Station F, the world’s largest startup campus. Spread across 34,000 square meters, it has launched over 5,000 startups and helped raise €8 billion in capital. The survival rate? An impressive 92.4%. Most of its top-performing startups are in AI, further cementing Paris’s dominance in the field.
London and Paris: Twin Engines, Not Rivals
Despite Paris’s momentum, this isn’t a zero-sum game. Industry leaders say London and Paris now act as complementary forces, not competitors. Remus Brett of Phoenix Court put it best: the two cities form “twin engines” powering Europe’s innovation economy.
London retains a dominant position in fintech, with 466,000 software developers and the majority of the UK’s 18 fintech unicorns. Paris, meanwhile, leads in AI innovation, offering a unique mix of top-tier academic talent, bold public investment, and startup acceleration.
Other cities are also emerging across Europe. Cambridge, Munich, Vilnius, and Zagreb are building their own ecosystems. Still, Europe faces headwinds. McKinsey reports that Europe’s global market cap share in tech, media, and telecom has plummeted from 30% in 2000 to just 7% in 2024. This underscores the need for continued investment and cross-border collaboration.
As Yoram Wijngaarde, founder of Dealroom, said: “Innovation doesn’t happen in a vacuum. Ecosystems matter.” With London and Paris now leading the charge, Europe is better positioned than ever to shape the next wave of global tech.
