Europe may not have as many tech giants as the US, but that’s not where its strength lies.
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Where the old continent does really well is density, says the new Global Tech Ecosystem Index_._
Europe is home to more of the world’s highest-performing tech ecosystems relative to population size than any other region, according to research by Dealroom.co, a global intelligence platform for startups and tech ecosystems.
After Cambridge, Belgium’s Ghent ranks second in Europe among cities of under half a million people.
That’s due to its considerable enterprise value per capita, led by Argenx – a biotech company valued at €41bn – as well as a “deep tech and life sciences spinout pipeline that continues to grow the ecosystem’s overall value”, Dealroom.co says, matched with a high rate of founders, most coming from Ghent University.
At the same time, the Belgian city, home to fewer than 300,000 people, is building a new software sector, with Aikido Security being a recent example.
‘Record AI investment’ pushes London to 4th place worldwide
There are fewer surprises in the general ranking that lists the most successful ecosystems through venture capital investments, enterprise value, momentum, unicorns (privately owned startup companies valued at $1 billion or more) and university network.
The US still dominates from the West to the East Coast, with the Bay Area taking the top spot, New York in second place, and Boston rounding out the top three.
However, Europe isn’t far behind.
London – ranked fourth worldwide – has reclaimed its position as Europe’s leading tech ecosystem, overtaking Paris in 2026, and ahead of Los Angeles, Austin and Tel Aviv in global ranking.
The city remains one of the world’s leading hubs for AI, fintech and deep tech innovation, currently driven by record AI investment – €6bn in 2025, up from $3.9bn in 2024; delivering consistent unicorn creation.
“Last year, London tech companies raised €15.3 billion, up 45% from 2024, while the city is now home to 138 unicorns, including Wayve, Granola, OLIX and ElevenLabs,” Dealroom.co researchers told Europe in Motion.
At the same time, Paris continues to show strength, particularly in artificial intelligence.
It raised €4.3bn in venture capital (VC) funding and remains home to leading companies including Mistral, AMI Labs and Mirakl. AI now accounts for around 30% of VC investment in Europe, “underlining the region’s focus on next-generation technologies,” says Dealroom.co.
Stockholm (19th) is the only other European city to break into the world’s top 20.
Moving up fast: A glance at the Index’s Rising Stars
Istanbul ranks as the third rising star in the global tech scene, after India’s Mumbai (1st) and China’s Hefei (2nd).
At the same time, Kyiv comes in eighth, losing a few positions compared to 2025 due to modest growth in the electric vehicle market since 2019 (4.3x), with other cities like Athens (6.7x) or Zagreb (14x) showing higher rates.
And as we zoom in on Europe, Zagreb is the city to watch right now. It’s now the fastest-growing tech hub in the EU and ranks 11th worldwide.
More broadly, eastern Europe looks like it’s building momentum, with Athens (2nd), Sofia (3rd), Prague (4th) and Vilnius (5th) showing up at the top across the EU bloc.
However, Dealroom.co says that the Rising Stars ranking is designed for emerging ecosystems building from a less established base, so “seeing central European cities climb here reflects ecosystem momentum” rather than a shift in where global innovation is concentrated.
