The Tech Tug-of-War: Paris, London, and the Rise of Eastern Europe
May 23, 2025, 5:01 pm
Location: Netherlands, North Holland, Amsterdam
Employees: 51-200
Founded date: 2013
Total raised: $9.79M
In the world of technology, cities are like athletes in a race. Some sprint ahead, while others are just warming up. Recently, Paris and London have found themselves in a heated competition, with Paris taking the lead in the 2025 Tech Ecosystem Index. This shift has sparked discussions about the strengths and weaknesses of these two iconic cities. Meanwhile, a new wave of contenders from Central and Eastern Europe is emerging, ready to shake up the status quo.
Paris has been steadily building its tech sector. The city is not just a pretty face; it has depth and value. For the first time, it has outpaced London in the overall rankings of global tech ecosystems. The Bay Area in California remains the gold standard, followed by New York and Boston. Paris now sits comfortably in fourth place, with London trailing behind in sixth. This is a significant milestone for the French capital.
The report highlights Paris's impressive growth in enterprise value. The city is thriving, especially in artificial intelligence. However, London still holds the crown for combined value, boasting over $300 billion more than Paris. In venture capital investments, London also leads, attracting $11 billion compared to Paris's $6 billion. The numbers tell a story of resilience and dominance.
But it’s not all about the dollars. The 2025 Global Cities Index by Oxford Economics paints a broader picture. London excels in economy, culture, and internationalism, ranking second overall, just behind New York. Paris, on the other hand, has reclaimed its third-place position. Yet, when it comes to quality of life, Paris shines at seventh, while London languishes at a dismal 144th. The housing crisis in London is a heavy anchor, dragging down its appeal. Residents are spending a significant portion of their income on housing, a burden that many cities do not share.
Despite these challenges, London remains a powerhouse. It ranks first in human capital, a testament to its talent pool. The city is poised to stay relevant, but without addressing housing issues, it risks becoming increasingly unequal. The divide between the haves and have-nots is widening, and that’s a ticking time bomb.
Meanwhile, a new narrative is unfolding in Central and Eastern Europe. Cities like Kyiv, Vilnius, and Zagreb are rising stars in the tech landscape. They have been recognized in the Top 20 Rising Tech Hubs globally, according to Dealroom’s Global Tech Ecosystem Index. This recognition is not just a badge of honor; it signifies a shift in the global tech narrative.
These cities are experiencing rapid growth in enterprise value and the number of unicorns. They are not just emerging; they are gaining momentum. Local talent, increased investor interest, and supportive policies are fueling this growth. The tech scene in CEE is vibrant and full of potential.
While traditional hubs like San Francisco and London still dominate, the emergence of these smaller cities indicates a diversification of the tech ecosystem. The gap in investment levels remains, but the trajectory is promising. The inclusion of Kyiv, Vilnius, and Zagreb in the rankings is a signal that the region is ready to compete on a global scale.
The report also highlights the European AI race. Paris ranks fifth globally as an AI hub, with London close behind at seventh. However, the U.S. continues to lead the charge, securing a staggering $85 billion in AI investments last year. European startups, in contrast, managed to attract only $13 billion. This disparity is a wake-up call for Europe.
Despite the challenges, the resilience of the tech sector in CEE is noteworthy. Deep Tech is thriving, with Paris and Cambridge leading the charge. While overall tech investment has seen a decline, Deep Tech has proven to be more resilient. This sector is a beacon of hope for the future.
The findings from Dealroom’s report are crucial for local stakeholders and international investors alike. They provide a roadmap for understanding local innovation ecosystems. High-performing startup ecosystems are no longer confined to traditional tech hubs. The rise of CEE cities is a testament to this evolution.
In conclusion, the tech landscape is shifting. Paris may have taken the lead over London, but the competition is far from over. London still holds significant advantages, but it must address its housing crisis to maintain its status. Meanwhile, the rise of Kyiv, Vilnius, and Zagreb signals a new era in the tech world. These cities are not just rising; they are ready to compete. The race is on, and the finish line is still far ahead. The future of tech is a tapestry woven from diverse threads, and it’s more vibrant than ever.
Paris has been steadily building its tech sector. The city is not just a pretty face; it has depth and value. For the first time, it has outpaced London in the overall rankings of global tech ecosystems. The Bay Area in California remains the gold standard, followed by New York and Boston. Paris now sits comfortably in fourth place, with London trailing behind in sixth. This is a significant milestone for the French capital.
The report highlights Paris's impressive growth in enterprise value. The city is thriving, especially in artificial intelligence. However, London still holds the crown for combined value, boasting over $300 billion more than Paris. In venture capital investments, London also leads, attracting $11 billion compared to Paris's $6 billion. The numbers tell a story of resilience and dominance.
But it’s not all about the dollars. The 2025 Global Cities Index by Oxford Economics paints a broader picture. London excels in economy, culture, and internationalism, ranking second overall, just behind New York. Paris, on the other hand, has reclaimed its third-place position. Yet, when it comes to quality of life, Paris shines at seventh, while London languishes at a dismal 144th. The housing crisis in London is a heavy anchor, dragging down its appeal. Residents are spending a significant portion of their income on housing, a burden that many cities do not share.
Despite these challenges, London remains a powerhouse. It ranks first in human capital, a testament to its talent pool. The city is poised to stay relevant, but without addressing housing issues, it risks becoming increasingly unequal. The divide between the haves and have-nots is widening, and that’s a ticking time bomb.
Meanwhile, a new narrative is unfolding in Central and Eastern Europe. Cities like Kyiv, Vilnius, and Zagreb are rising stars in the tech landscape. They have been recognized in the Top 20 Rising Tech Hubs globally, according to Dealroom’s Global Tech Ecosystem Index. This recognition is not just a badge of honor; it signifies a shift in the global tech narrative.
These cities are experiencing rapid growth in enterprise value and the number of unicorns. They are not just emerging; they are gaining momentum. Local talent, increased investor interest, and supportive policies are fueling this growth. The tech scene in CEE is vibrant and full of potential.
While traditional hubs like San Francisco and London still dominate, the emergence of these smaller cities indicates a diversification of the tech ecosystem. The gap in investment levels remains, but the trajectory is promising. The inclusion of Kyiv, Vilnius, and Zagreb in the rankings is a signal that the region is ready to compete on a global scale.
The report also highlights the European AI race. Paris ranks fifth globally as an AI hub, with London close behind at seventh. However, the U.S. continues to lead the charge, securing a staggering $85 billion in AI investments last year. European startups, in contrast, managed to attract only $13 billion. This disparity is a wake-up call for Europe.
Despite the challenges, the resilience of the tech sector in CEE is noteworthy. Deep Tech is thriving, with Paris and Cambridge leading the charge. While overall tech investment has seen a decline, Deep Tech has proven to be more resilient. This sector is a beacon of hope for the future.
The findings from Dealroom’s report are crucial for local stakeholders and international investors alike. They provide a roadmap for understanding local innovation ecosystems. High-performing startup ecosystems are no longer confined to traditional tech hubs. The rise of CEE cities is a testament to this evolution.
In conclusion, the tech landscape is shifting. Paris may have taken the lead over London, but the competition is far from over. London still holds significant advantages, but it must address its housing crisis to maintain its status. Meanwhile, the rise of Kyiv, Vilnius, and Zagreb signals a new era in the tech world. These cities are not just rising; they are ready to compete. The race is on, and the finish line is still far ahead. The future of tech is a tapestry woven from diverse threads, and it’s more vibrant than ever.