London has reclaimed its position as Europe’s top tech ecosystem, knocking Paris off the top spot, driven by record AI investment, according to new data.
The Dealroom Global Tech Ecosystem Index data also shows that Europe is home to more of the world’s highest-performing tech ecosystems relative to population size than North America and every other region in the world.
In 2024, London lost its position as the top tech ecosystem to Paris, but in 2025 it has reclaimed the top spot, powered by a record $7bn in AI investment, up from $3.9bn in 2024, the creation of new unicorns, and its depth across sectors, Dealroom said.
In 2025, London tech companies raised $17.8 billion, up 45 per cent from 2024, with the city now home to 138 unicorns, including the likes of Wayve, Granola and ElevenLabs.
ChatGPT developer OpenAI is to make London its largest research hub outside of its San Francisco headquarters, while Anthropic recently announced plans for a major new London with capacity for 800 staff.
London, ranked fourth globally, came in ahead of Paris, Stockholm, Berlin and then Munich across Europe.
Paris, home to AI startups like Mistral and the newer AMI Labs, raised $5bn in VC funding in 2025.
The data shows that AI now accounts for around 30 per cent of VC investment in Europe, underlining the region’s focus on next-generation technologies.
The data also shows that Europe dominates the global Density Leaders rankings, with 45 European cities featured in the global top 100, ahead of North America’s 40.
Cambridge ranks as the world’s third-highest Density Leader behind only the Bay Area and Boston.
The Density Leader rankings measure innovation output per capita, including startup activity, enterprise value creation, unicorns and university linkages.
The data also shows that specialist ecosystems focused on AI, defence tech and deep tech, like Munich, Kyiv, Athens and Sofia, are accelerating rapidly.
It also shows that smaller specialist ecosystems, including Ghent and Lausanne, are emerging as globally competitive centres for research, deep tech and entrepreneurship.
Yoram Wijngaarde, founder & CEO, Dealroom.co, said: “What stands out is not just the strength of leading hubs like London and Paris, but the rise of high-performing smaller ecosystems often built around leading research and academic institutions."
Bobby Jäckle, Partner at Visionaries, said: “From London’s leadership in AI and fintech to deep tech hubs like Munich, Cambridge and Lausanne, we’re seeing a new generation of founders building with greater ambition and urgency."
The data scrutinised venture capital investment, enterprise value creation, unicorns, ecosystem momentum and university linkages.
But comparing 2025 and 2024 data is not directly comparable, as the 2025 data accounts for more factors.
IMAGE: PIXABAY
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