Paris is the new London: Why are companies establishing HQs in the French capital?

Paris has quietly but confidently risen to challenge London’s long-standing position as Europe’s premier tech hub. According tonew data by Dealroom,announced at GITEX Europe in Berlin, Paris now stands as the Global European Tech Champion, surpassing London for the first time ever.
This change stems from a potent mix of rising venture capital, startup value creation, and strategic growth efforts that have converted the French capital into the continent’s latest hub for tech innovation. Notably, Paris’s ecosystem has accelerated over the last 12-24 months, mainly due to the surge in AI talent and a new wave of repeat founders, as highlighted by Dealroom’s 2025 Tech Ecosystem Index.
So, can we claim that Paris is the new London now?
Last year, French tech companies raised an impressive $7.8 billion, led by AI pioneers includingMistral AI ($526 million),Poolside ($500 million), andElectra ($341 million). While this figure fell short of London’s $11.3 billion, which included major rounds fromWayve ($1.1 billion)andMonzo($639 million), Paris’s growth trajectory tells a more compelling story. Between 2017 and 2024, the combined enterprise value of Paris startups grew 5.3x, outpacing London’s 4.2x growth.
A milestone in Paris’s ascendance came in May 2025, when fintech giant Revolutannouncedits Western European headquarters in Paris. The €1 billion investment will create over 200 jobs, secure a French banking license, and develop market-specific products. This decision followed Revolut’s unprecedented 47% year-over-year growth in French users, reaching 5 million, the fastest growth in any EU country.
This move reflects a broader trend: Microsoft has committed €4 billion to French AI infrastructure, while Meta, Google, and OpenAI have established AI labs in Paris, cementing the city’s position as Europe’s AI powerhouse.
Paris now hosts over 8,000 startups and has produced over 20 unicorns valued at over $1 billion each. The city’s tech sector thrives, with 344 investment rounds exceeding $1 million in 2024 alone. France’s IT sector isprojectedto reach €78.77 billion by 2029, and the country led EU tech funding in 2022 with €13.5 billion raised.
A world-class educational networkfuelsParis’s tech ecosystem. The Institut Polytechnique de Paris, Paris-Saclay University, and Télécom Paris annually produce thousands of engineers and AI experts. Elite engineering schools like ENS, Centrale, and ENSTA, collaborating with top business schools such as HEC and ESSEC, further enrich the city’s talent pool.
ParisTech schools graduate more than 4,000 tech professionals yearly, sustaining established companies and fast-growing startups like Mistral AI, which recently secured €600 million for sovereign AI infrastructure. With over 1,000 AI startups in France, more than half in Paris, the city has become the country’s AI epicentre.
The French government’s proactive policies have been crucial to Paris’s rise. The French Tech Visa offers a renewable four-year residence permit for international tech professionals, streamlining global talent recruitment for startups.
The government also provides compelling tax incentives, including a 30% R&D salary rebate and intellectual property profit exemptions, encouraging innovation investment. France’s AI Action Plan, supported by €2.3 billion from the France 2030 initiative, demonstrates the country’s commitment to AI leadership.
Station F, the world’s largest startup campus, epitomises Paris’s tech revolution. This 34,000-square-meter hub hosts over 1,000 startups and has launched over 5,000 French startups, achieving a remarkable 92.4% survival rate. These companies have raised over €8 billion and created more than 47,000 jobs. Notably, 34 of Station F’s 40 most promising startups focus on AI, highlighting Paris’s strength in this sector.
Roxanne Varza, Director of Station F, observed: “Paris’s ecosystem has accelerated over the last few years, largely due to the AI talent and new wave of repeat founders. The pro-business and pro-innovation government agenda is helping to further this: the AI Action Summit at the beginning of 2025 demonstrated that our ambition is more than words, we’re taking the steps to deliver for France and Europe. More international funds are building strong teams to cover the French market because they’re excited about the potential here, and we’re committed to continuing to make France Europe’s leading innovation hub.”
Despite its recent prominence, Paris’s rise complements rather than diminishes London’s importance.Remus Brett, partner at Phoenix Court, explained: “As long-term investors in both cities, we don’t see this as a rivalry; the success of one strengthens the other. Paris and London have evolved as twin engines of the European tech ecosystem, and this symbiotic relationship is helping Europe build the next wave of global tech champions. London remains a standout in fintech with its unique combination of financial heritage, regulatory innovation, and deep talent, producing category leaders like Monzo and Revolut.”
With more unicorn companies than any other European city, London plays a vital role in what many call the ‘New Palo Alto ‘— a network of European innovation hubs rivalling Silicon Valley in energy and ambition. Meanwhile, Paris’s AI investment has attracted exceptional European talent. The city has become a magnet for next-generation talent and Europe’s AI focal point, supported by world-class research institutions and bold public investment.
London maintains leadership in specific sectors, particularly fintech, with 466,000 software developers compared to Paris’s 128,000. The British capital claims 76% of the UK’s unicorns, including all 18 fintech unicorns.
Paris’s emergence doesn’t limit Europe’s tech ecosystem to two cities. Cambridge (UK), Munich, Vilnius, and Zagreb show strong potential for nurturing next-generation tech companies.  However, McKinseyreportsthat Europe’s share of global tech, media, and telecom market capitalisation has decreased from 30% in 2000 to 7% in 2024, highlighting the need for continued investment and collaboration to compete with the US and Asia.
Yoram Wijngaarde, Founder and CEO of Dealroom.co, summarised this evolution: “Ecosystems matter. Innovation doesn’t happen in a vacuum, as we’ve seen with the rise and rise of Silicon Valley and the Bay Area and the explosion in tech across Europe. These important tech hubs have access to investment, talent, top-tier universities, patents, and partners working daily to make success happen.”
While London remains a formidable tech hub with distinct advantages, Paris has undeniably established itself as a tech powerhouse. The question is no longer whether Paris can compete with London, but how these twin European tech engines will collectively shape global innovation.