Paris has been crowned as Europe’s leading tech ecosystem, surpassing London on multiple fronts according to recent data from Dealroom, a prominent analyst of startups and venture capital landscapes. The City of Light’s ascent to the top spot signals a significant shift in the European tech scene, as Paris has managed to outpace its British counterpart in terms of enterprise valuation growth and impact from funding rounds.
Between 2017 and 2024, Paris saw its startup enterprise value increase by an impressive 5.3 times, compared to London’s 4.2 times. This development comes despite London securing larger funding rounds overall. The key differentiator, according to Dealroom, lies in the effectiveness of the Parisian funding rounds, which have had a more pronounced impact on company valuations. Notable French tech firms such as Mistral AI and Poolside collectively raised $7.8 billion last year, underscoring their growing influence, although they still trail behind London’s $11.3 billion in total fundraising.
Europe’s tech landscape faces challenges on the global stage, with a marked decline in the continent’s share of the tech, media, and telecom market capitalization. From a robust 30% in 2000, Europe’s share plummeted to a mere 7%, as reported by McKinsey. Had Europe retained its former share, an additional $8 trillion in market value could have been generated, McKinsey claims.
Paris’ rise is further exemplified by its unique position as the sole European city in Dealroom’s list of the top five global tech champions, an accolade largely dominated by U.S. cities. This recognition comes just ahead of the prestigious VivaTech conference, slated to be hosted in Paris. The event, known for attracting top executives from giants like Nvidia, Alibaba, Meta, OpenAI, and others, anticipates a gathering of influential minds eager to discuss the future of technology. Last year, VivaTech drew in over 165,000 attendees, highlighting its significance on the global tech calendar.
Francois Bitouzet, managing director of VivaTech, noted, “It’s not just about the competitiveness of Paris on the AI scene today; it’s also about what will happen next and how we can keep attracting talent, investment, and tech activities.” His comments echo the broader ambitions of French President Emmanuel Macron, who since 2017, has vigorously advocated for France to emerge as a global leader in AI and ‘deep-tech’. Macron has strategically invited numerous firms to invest in the nation, promoting initiatives like the startup incubator Station F to bolster France’s tech credentials.
