Paris has officially emerged as the leading tech hub in Europe, surpassing London on several key innovation and enterprise metrics for the first time, according to new data released by Dealroom. This shift in continental dominance represents a significant turning point for the European tech landscape and showcases the success of France’s long-term strategic investments in artificial intelligence, deep tech, and startup development.
From 2017 to 2024, Paris-based startups expanded their combined enterprise value by a staggering 5.3 times. In comparison, London startups managed a 4.2 times increase over the same period. Dealroom’s analysis, which includes a wide range of performance indicators from startup valuations to ecosystem maturity, placed Paris at the top of Europe’s innovation pyramid—a historic first.
Funding Rounds vs. Impact on Valuations
Although London continues to lead in the size of funding rounds—raising $11.3 billion in 2023 versus Paris’ $7.8 billion—this metric no longer translates to dominance. The key differentiator lies in how effectively those funds translate into startup valuations. Paris-based companies achieved more significant valuation increases from smaller funding rounds, reflecting higher efficiency and investor confidence in long-term potential.
This suggests that French startups are scaling smarter. Instead of pursuing ballooning rounds that inflate short-term optics, Parisian ventures are optimizing capital usage and focusing on sustainable business models. As a result, investors are rewarding them with stronger valuations, a critical signal of ecosystem health.
Macron’s Vision Begins to Bear Fruit
French President Emmanuel Macron has made technology and innovation a centerpiece of his national economic strategy since taking office in 2017. By championing artificial intelligence and deep-tech development, he reshaped France’s global perception—from a nation slow to adopt digital trends to a forward-looking powerhouse in emerging technologies.
Macron aggressively promoted startup creation through initiatives such as the French Tech Visa, which streamlined immigration for international tech talent, and Station F, now one of the largest startup incubators in the world. He also incentivized domestic and foreign companies to invest in AI, advanced manufacturing, cybersecurity, and biotech.
These policies fostered an environment where companies like Mistral AI, Poolside, and other deep-tech firms thrived. Their successful funding rounds and international collaborations demonstrate the effectiveness of Macron’s strategic push. Unlike many European nations, France committed state resources to enable innovation ecosystems that rival those in the U.S. and Asia.
Paris Emerges as a Global Contender
Paris has not only claimed the top spot in Europe—it has also gained global visibility. Dealroom listed Paris as the only European city among the top five global tech champions, joining U.S. cities traditionally dominant in technology. This inclusion marks a milestone for France and underscores the city’s rising influence in artificial intelligence, cloud computing, fintech, and green tech.
This global ascent sets the stage for VivaTech, one of the world’s largest tech conferences, scheduled to take place in Paris next month. The event will feature executives from industry giants such as Nvidia, Meta, Alibaba, OpenAI, Anthropic, Cohere, and homegrown champion Mistral AI.
Last year, more than 165,000 people attended VivaTech, a figure that continues to rise. This year’s conference promises to be even more significant, drawing global investors, entrepreneurs, developers, and researchers under one roof. According to VivaTech’s Managing Director Francois Bitouzet, the event is about more than showcasing innovation—it’s about reinforcing Paris’ long-term leadership in the global tech ecosystem.
Europe’s Shrinking Share in Global Tech
Paris’ rise stands in contrast to Europe’s overall diminishing share in the global technology market. According to a McKinsey report released on Wednesday, Europe’s share of the global tech, media, and telecom market plummeted from 30% in 2000 to just 7% in 2023. While the market capitalization of global tech companies surged from $7 trillion to $34 trillion over that period, Europe failed to keep pace with the United States and China.
McKinsey estimated that Europe could have generated an additional $8 trillion in market value had it maintained its original market share. This shortfall underscores the need for European nations to increase their innovation investments and create favorable regulatory frameworks to stimulate growth.
France, with Paris at the forefront, appears to have internalized that message. The country has begun to bridge the innovation gap by prioritizing long-term tech leadership over short-term political cycles. By developing local ecosystems and attracting global firms, France created a model other European countries now seek to emulate.
Beyond Capital: Talent and Ecosystem Maturity
Paris didn’t claim the crown through funding alone. Talent, infrastructure, and ecosystem maturity played equally important roles. Over the past decade, France built a robust pipeline of tech talent through education reforms, increased R&D funding, and a more welcoming stance on international workers. These reforms gave French startups access to skilled engineers, data scientists, and entrepreneurs at a scale previously unseen in the country.
Additionally, programs such as La French Tech and Bpifrance, the state-backed public investment bank, injected crucial early-stage capital into thousands of startups. As these firms matured, they began attracting larger international rounds, proving that government involvement in tech ecosystems can produce tangible and scalable results.
France also embraced a model of public-private partnership, encouraging collaboration between research institutions, corporations, and startups. These collaborations helped fast-track the development and commercialization of deep-tech solutions in sectors such as AI, healthcare, and quantum computing.
The Road Ahead: Challenges and Opportunities
While Paris currently leads the European pack, sustaining this momentum presents new challenges. The global competition for tech talent remains fierce. Countries like the U.S., Canada, and India continue to offer strong incentives for developers and researchers. France must further improve retention efforts and ensure that local talent does not migrate abroad.
Paris also faces pressure to maintain its startup-friendly environment amid potential regulatory overreach from the European Union. Balancing innovation with data privacy, competition law, and digital taxation will require precision and vision.
Nonetheless, the current trajectory looks promising. With a strong foundation in place, French tech leaders aim to scale globally while remaining anchored in Paris. Investment inflows continue to rise, ecosystem enablers are expanding, and global attention now turns to the French capital not just for fashion or culture—but for innovation.
Conclusion: Paris Redefines the Future of European Innovation
Paris has redefined the European tech narrative. By strategically focusing on ecosystem development, attracting top-tier talent, and encouraging sustainable startup growth, the city surpassed London and stepped onto the global stage.
Backed by visionary policymaking, supportive institutions, and ambitious entrepreneurs, Paris positioned itself not as a challenger—but as a champion. As VivaTech prepares to host the global tech community, the city will solidify its status as a beacon of innovation, resilience, and growth.
Europe may have lost ground globally, but with Paris leading the charge, the continent now has a renewed chance to reclaim its place in the future of technology.