Europe may not rival Silicon Valley in sheer number of tech giants, but its strength lies in density. According to the latest Global Tech Ecosystem Index from Dealroom.co, the continent is home to more high-performing tech ecosystems per capita than any other region. The research underscores how smaller cities—often overlooked—are driving Europe's ascent in global tech rankings.
Ghent: A Biotech Powerhouse in a Small Package
Among European cities with fewer than half a million inhabitants, Belgium's Ghent ranks second only to Cambridge. With a population under 300,000, Ghent boasts an extraordinary enterprise value per capita, largely thanks to Argenx, a biotech company valued at €41bn. Dealroom.co highlights a "deep tech and life sciences spinout pipeline that continues to grow the ecosystem's overall value," fueled by a high rate of founders from Ghent University. The city is also cultivating a new software sector, with Aikido Security as a recent example.
This concentration of innovation in a small territory is a recurring theme across Europe. The continent's tech ecosystems often emerge from strong university networks and specialized clusters, rather than sprawling metropolitan areas.
London Leads, Paris and Stockholm Follow
In the overall global ranking, the United States still dominates: the Bay Area takes first place, New York second, and Boston third. But Europe is close behind. London has reclaimed its position as Europe's leading tech ecosystem, ranking fourth worldwide and overtaking Paris. The British capital is a hub for AI, fintech, and deep tech, driven by record AI investment—€6bn in 2025, up from $3.9bn in 2024. Dealroom.co reports that London tech companies raised €15.3bn last year, a 45% increase from 2024, and the city now hosts 138 unicorns, including Wayve, Granola, OLIX, and ElevenLabs.
Paris remains a strong contender, particularly in artificial intelligence. It raised €4.3bn in venture capital funding and is home to leading companies such as 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. Stockholm (19th) is the only other European city in the global top 20.
Eastern Europe's Rising Stars
The index's Rising Stars category reveals a shift eastward. Istanbul ranks third globally, after Mumbai and Hefei. Kyiv comes in eighth, losing ground due to modest growth in the electric vehicle market since 2019 (4.3x), while cities like Athens (6.7x) and Zagreb (14x) show higher rates. Zagreb is now the fastest-growing tech hub in the European Union and ranks 11th worldwide. More broadly, eastern Europe is building momentum: Athens (2nd), Sofia (3rd), Prague (4th), and Vilnius (5th) top the EU bloc.
This trend aligns with broader European dynamics. As Switzerland tops global immigration indexes, talent mobility across the continent continues to fuel tech growth in unexpected places. The rise of these smaller hubs also reflects a shift away from traditional powerhouses, as remote work and specialized clusters gain traction.
Europe's tech ecosystem is not about replicating Silicon Valley; it's about leveraging density, university spinouts, and niche strengths. From Ghent's biotech to Zagreb's rapid expansion, the continent's small but mighty hubs are proving that size isn't everything.
