Europe’s Startup Ecosystems Gain Momentum

Europe’s innovation economy is evolving rapidly, with ecosystems across the continent making bold moves in the Global Startup Ecosystem Report 2025 (GSER 2025). From established leaders like Paris to fast-climbing hubs such as Istanbul and Gothenburg, European cities are showing strong growth across early-stage funding, unicorn creation, and market reach.

This year’s rankings reflect the region’s growing diversity of strengths — from Fintech and Deep Tech to Climate innovation and Gaming — and reveal how European ecosystems are competing on a global scale. In this article, we explore the top-performing and fastest-rising startup ecosystems across Europe, and what their momentum signals for the future of entrepreneurship on the continent.

• Eight European ecosystems are in the Top 40.
• Though still Europe’s top performing ecosystem, London dropped one place to #3 globally.
• Paris moved up two places to become the #12 global startup ecosystem, backed by a 7% increase in exits over $50 million, including BeReal’s $542 million exit in 2024.
• Paris and Madrid were the only European ecosystems in the Global Top 40 to move up in the rankings. All others slipped at least one position.
• Madrid moved from the Top 100 Emerging Ecosystems Ranking in 2024 to #40 globally this year, tied with Mumbai. The ecosystem produced the same number of exits year over year, with eSports company Movistar Riders being the top valued exit at $6.3 billion.
• Istanbul moved up 10 places to become the #3 Emerging Startup Ecosystem due to an increase in exits over $50 million this year.
• Birmingham, U.K. moved into the #21-30 Emerging Startup Ecosystem ranking, backed by improved performance in the Performance metric, measuring the size and performance of an ecosystem based on the accumulated tech startup value created from exits and funding.

Paris - #12 Global Startup Ecosystem

"Paris thrives as a global innovation hub, where a supportive ecosystem fuels the ambitions of entrepreneurs worldwide." — Olivia Hervy, Chief Ecosystem Officer, Viva Technology

Greater Lausanne Region - #10 Emerging Startup Ecosystem

"We create the framework conditions to help entrepreneurs establish themselves over the long term." — Isabelle Moret, Head of the Department of Economy, Innovation Employment, and Heritage (DEIEP) of the canton of Vaud

Budapest - #91-100 Emerging Startup Ecosystem

"With a rich talent pool, not just in entrepreneurship and engineering, but also in science, and supportive policies, Budapest is ready for remarkable growth. In 2025, our main focus is on the development of the Deep Tech ecosystem." — László Bódis, CEO, Hungarian Innovation Agency

For more insights, explore our European ecosystem pages:

• Baku
• Berlin
• Budapest
• Greater Lausanne Region
• Istanbul
• London
• Mid-East Region, Ireland
• Paris
• Porto
• Turin
• Valencia
• Valetta
• Tbilisi