Paris overtakes London into global top five of tech
Despite raising more venture capital than Paris in recent years, London's tech firms saw a smaller gain in enterprise value. The report found that between 2017 and 2024, the total enterprise value of Paris tech firms grew just over five fold, outpacing London's 4.2 times over the same period.
Paris's AI sector is emerging as a particularly powerful force, with nearly half of the city's $7.8 bn in funding last year going to AI, including standout rounds from Mistral AI, Poolside and electra.
Meanwhile, London, four weeks ago, saw the collapse of one of its best-known AI unicorns, Builder AI, while earlier last month London-listed Deliveroo agreed the terms of a takeover by its larger US rival Doordash and fintech giant Revolut, three weeks ago, chose Paris as a base for continental European expansion in a blow to the city it was founded in.
'Deliveroo being snapped up is yet another painful example of a British success story bought out by a US giant', said Mark Pearson, chief executive of Fuel Ventures.
He added: 'It's a clear signal that the UK is losing its grip on scaling and retaining its own tech champions.' Director of Station F, Europe's largest startup campus, Roxanne Varza, credits Paris's sharp rise to AI expertise and policy support, saying that the ecosystem 'has really accelerated over the last few years, largely due to the AI talent and a new wave of repeat founders'.
She added: 'More international firms are building strong teams here because they're excited about the potential'.
London continues to lead Europe in AI investment, with startups raising $3.5 bn last year, ahead of Paris's $2.4 bn, and Munich's $763m. Optimism also persists in deep tech and life sciences.
Recently, BioNTech committed £1bn to a decade-long UK expansion, opening a new AI hub in London and research space in Cambridge. The investment, backed by government support is expected to create over 400 jobs.
It is interesting to note — as mentioned above — that digital bank Revolut has chosen Paris for its fresh western Europe headquarters with a major one billion euros investment. The British-born fintech giant said it will create over 200 jobs in France, in what it calls the 'largest investment in the French financial sector in a decade.'
The firm has also applied for a French banking licence, which it revealed at the 'Choose France' investment summit hosted by President Emmanuel Macron at Versailles. While London will remain its global headquarters, the move follows a series of tribulations in its UK business.
The skyline of La Defense business district is seen behind the Eiffel tower in Paris, France. — Reuters
Revolut finally secured a UK banking licence last year after a three-year wait that resulted in Nikolay Storonsky, the fintech's CEO, blasting the UK for its 'extreme bureaucracy'. Stronsky had previously dismissed the notion of a London listing for the firm as 'not rational' when compared to the liquidity offered in US markets.
Meanwhile, Sid Jajodia, Revolut's chief banking officer, said new operations in Paris would put the company closer to its 'largest fastest-growing customer base.' Jajodia praised France's 'dynamic banking ecosystem' and cited strong regulatory framework as key factors behind the move. Officials in Paris celebrated the endorsement from the fintech giant.
Augustin de Romanet, president of Paris Europlace, said: 'Revolut's strategic investment — as Europe's leading fintech — reinforces Paris' standing as a key financial centre, supported by a robust, innovative and forward-looking ecosystem.'
He added: 'This choice reflects the strong momentum we are collectively building to strengthen France's economic competitiveness and international influence.'
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