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Paris has been named the brand new European tech champion, surpassing London.
Paris startups’ enterprise worth grew 5.3 occasions from 2017 to 2024.
London attracted bigger funding rounds however decrease firm valuations.
Stockholm:
Paris has been named as the brand new European tech champion, beating London for the primary time on some metrics, in accordance with information from Dealroom, which collects info on startups and enterprise capital companies.
Between 2017 and 2024, the mixed enterprise worth of Paris startups elevated 5.3 occasions, in contrast with 4.2 occasions for London, Dealroom mentioned, after assessing dozens of metrics that contribute to a profitable tech ecosystem.
Though London attracted larger funding rounds, the precise valuations of the businesses haven’t elevated dramatically, whereas the funding rounds secured by Paris-based firms have had an even bigger impression on valuations, it mentioned.
French tech firms, together with Mistral AI and Poolside, raised $7.8 billion final yr, lower than London’s $11.3 billion.
Europe has been falling behind different areas in tech improvements, with just some international locations making an attempt to spice up tech investments.
Whereas the market capitalisation of worldwide tech, media and telecom firms rose from $7 trillion in 2000 to $34 trillion final yr, Europe’s share dropped from 30 per cent to only 7 per cent, a McKinsey report mentioned on Wednesday.
If Europe had maintained its share, it will have generated a further $8 trillion in market worth, it mentioned.
Paris can also be the one European metropolis on Dealroom’s high 5 international champions checklist, which is dominated by U.S. cities.
It comes a month forward of Paris internet hosting one of many largest international tech conferences, VivaTech, that includes high executives from firms equivalent to Nvidia, Alibaba, Meta, OpenAI, Mistral, Anthropic and Cohere. Final yr’s convention was attended by greater than 165,000 folks.
“It isn’t simply in regards to the competitiveness of Paris on the AI scene immediately, it is also about what is going to occur subsequent and the way we are able to carry on attracting the expertise, funding, and the tech actions,” Francois Bitouzet, managing director of VivaTech, instructed Reuters.
Since coming to energy in 2017, French President Emmanuel Macron has talked about wanting France to be a world chief in AI and ‘deep-tech’, inviting a number of companies to spend money on the nation and pushing for creation of startup incubator Station F.
(Aside from the headline, this story has not been edited by NDTV workers and is printed from a syndicated feed.)