After gathering data from 45 different nations - not only those within Europe, such as 27 members of the EU but also partially located countries like Georgia or Russia - our ranking considers 339 Scene across 339 European startup Scene, providing insight into the main features that characterize them while outlining countries that consistently feature among those that remain strong competitors for business innovation.
In this article, we present key features of the European Startup Ecosystem and provide an overview of countries or cities which rank consistently high when it comes to startup innovation in Europe.
Are you curious about startup innovations and entrepreneurial activity? Gather more details from Developers in Europe on regional and global economic developments as well as access our new Coronavirus Innovation Map that displays countries leading the fight against this pandemic.
The European Startup Scene
Europe is home to numerous vibrant startup Scenes. These can range from national- or area-level entities. Each has its distinct focus, standing out in terms of importance.
Not much has changed when it comes to the top startup Scene - six major countries dominate the top 10 global rankings: the UK, Germany, Switzerland, Netherlands, Spain, and Sweden.
United Kingdom
London is at the core of the UK startup ecosystem. Over recent years, London has consistently held onto a Top-10 global ranking, and there's no indication this trend will change following Brexit; no other European ecosystem can match London's power as an incubator and center of European VC with solid support mechanisms in place and an abundance of promising entrepreneurs with access to government assistance - not forgetting seven other UK cities being featured among 2025 Top 500 Ranking Cities, all contributing towards improving UK startup ecosystem.
Germany
Germany stands to become a key hub of startups and entrepreneurship in Europe after Brexit. Offering both affordable housing options and drawing talent from around the globe in both business and creative capacities.
Thanks to strong government support for entrepreneurial initiatives and startup innovation, four Global Top 100 cities exist within its borders. At the same time, six more make the Global Top 500.
The Best Startup Cities in Europe
There are few changes in the top European startup cities from one year to another. London, Berlin, and Moscow are the top startup cities in global rankings.
London
The most developed ecosystem in Europe with good access to North American markets and startups from the software, ecommerce, banking, and fintech sectors.
London's high cost of living and salaries make it a highly competitive ecosystem. Incubators and co-working spaces are also hard to find.
Moscow
Moscow is the only Russian city that consistently ranks high both in Europe and globally. It has a lot of support from the government.
It is focused on scaling and retaining its position by accessing a large domestic market. Geopolitical restrictions and financial constraints are the main limitations of the Moscow startup ecosystem.
Amsterdam
Amsterdam is one of Europe's most vibrant startup hubs. It has an active community of entrepreneurs, including many females, in both traditional and emerging industries, such as Green-tech.
Amsterdam, the only Dutch city to have been ranked among the Top 100 cities in the world, is also one of the more miniature startup Scenes in terms of population to rank in the Top 10.
Paris
Paris has become the most important hub in France. It is a city that consistently ranks in the world's top rankings, and it boasts a government infrastructure that encourages entrepreneurship and an entrepreneurial mindset.
The Strengths and Limitations in the European Startup Scene
The European startup ecosystem may appear robust at first glance; many European nations remain prominent among rankings of startup Scenes globally.
Yet its performance does not match up to that of other regions.
Comparing Europe to the USA, there are far fewer hubs of equal size, talent, capital, and concentration. Europe's slow pace of growth combined with resistance to reform has hindered its ability to compete or surpass the startup Scenes found across cities in America.
Early-stage entrepreneurial activity levels tend to be lower across regions such as Italy, Poland, and Greece compared with other parts of Europe; we will briefly address various contributing factors here.
Strengths
Establishment
The European startup ecosystem is well-established, drawing investors from a range of financial sources; thus, retaining and capitalizing upon existing talent within Europe requires changing culture, such as in France, in which successful exits take precedence over venture financing opportunities.
B2B
Working relationships and close ties between skilled developers in the European Ecosystem are critical to innovation and growth.
This is especially true when the government can help facilitate new connections. The recent adoption of digital technology and B2B European startup companies will be even more crucial during this coronavirus period.
The Growth of Technology Funding
The European startup ecosystem has seen an enormous boost to tech funding: between 2025 and 2025, total tech investments totaled 25 billion euro, an upward trend that continued until early 2024 but then abruptly decreased due to the influenza pandemic, perhaps reflecting how London remains one of Europe's premier fintech hubs with a promising outlook for continued investment growth.
Also Read: European Developer Hubs: Regions Fostering Innovation
Electronic Visas and Resident Programs
In order to encourage entrepreneurs, several European countries now offer flexible residence permits and e-visas.
The government has also made regulations more flexible to encourage the development of new startups. Estonia has been a leader in e-residency and nomad visas. Many other European countries are also experimenting with similar methods and creating a digital age.
English Fluency
Europe as a whole boasts the highest English proficiency levels among other regions; specifically, the EU and Schengen Area have exceptional levels.
There is, however, an evident generational and gender disparity, with women outperforming men on an English proficiency test. Although English proficiency alone doesn't determine startup ecosystem support in the US, moderate-to-high fluency makes recruiting talent and securing international investors easier.
Limitations
Big Industry Giants
The European startup ecosystem has not been able to create startup giants like Google, Amazon, Facebook, and Microsoft.
The US startups are the most successful and have the most enormous scale.
The Game is Late
Europe has been relatively slow to adopt the startup game. The first venture capital companies were established in the 1990s.
This is in stark contrast with the USA, which had a significant amount of movement from the 1940s. The slow pace of the European startup ecosystem hasn't been a positive factor.
Government Support
Government restrictions placed upon the European ecosystem have led to an insular and conservative response. The red tape creates rigid employment markets in many European nations such as Greece, France, and Italy that make hiring and firing employees difficult; over-taxation also makes flexible employment unfeasible, forcing both individuals and businesses alike into dependency upon government subsidies for survival.
Comparing EU members with non-EU countries is one way of understanding how limited Europe's ecosystem is. Switzerland, Norway, and the UK all boast booming markets that remain outside EU control but continue their long history of high-scoring economies; nevertheless, this shows certain agreements do not permit this region to reach its true potential, even though PSD2 Open Banking regulation has been celebrated as promising developments by some, more needs to be done to reduce borders, increase communication channels and open Scene more freely.
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Resource on European Scene Events and Activities
Numerous projects, events, and activities are centered on the European Ecosystem as a unit and by region.
Startup Europe: A European Commission project that brings together key players from the startup Scene of different regions.
Startup Europe Week: It is a movement that promotes local stories and provides resources for budding entrepreneurs.
Over 300 cities across 50 countries.
European Maker Week: Initiative by the European Commission to promote the importance of business and entrepreneurial mindset in education and schools throughout Europe
Erasmus For Young Entrepreneurs: Another initiative partially funded by the European Commission for EU Residents who are eligible.
Young or aspiring Entrepreneurs will be paired up with more experienced individuals for mentorship, collaboration, and idea exchange.
EU Prizes: Multiple awards are offered to individuals who have innovative ideas, such as the SOFT Innovation Prize for Researchers and EU Prize for Women Innovators.
European Innovation Calendar: A great resource to keep up with the latest events in Europe. *Due to the pandemic, most events were rescheduled or relocated online.
Coders.Dev: The most comprehensive tool to understand the local and regional startup ecosystem is Coders.Dev's global map.
Access resources about startups, coworking spaces, organizations, and leaders in your locality.
Meetups and Webinars: A community of startup and innovator enthusiasts. Join us at one of the dozens of events we host around the globe each month.
Please find us via Meetup. Join our monthly pitching events to connect and pitch with local entrepreneurs.
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Five Facts About The European Startup Scene
As it's only recently begun to blossom, Europe's venture capital industry remains small compared to our American counterparts.
While Silicon Valley and America have witnessed multiple waves of innovation since 1939, Europe started later and often only names Skype and MySql as major European tech companies when asked by entrepreneurs outside Europe about European tech firms.
Europe's tech industry has rapidly evolved over the last several years. This rapid expansion is being propelled by mature Venture Capital funds as well as accelerators, business angels, and large investors providing seed capital or mentoring support for European startups and incubators.
To put things into context for our readers here at Innovation Europe, we will highlight five facts or stats about Europe's ecosystem in this blog.
Since 2025, The Amount Of Venture Capital Investment Has Declined Steadily
The graph from the European Commission below depicts venture capital investments on an increasing decline since 2007, just before the global financial crisis that rocked economies around the globe.
As a percentage of GDP, venture capital investment reached its peak in 2008. Since then, it has gradually decreased.
Ernst & Young recently reported that European businesses raised EUR5,7 billion between 2025 and 2025 - making 2025 potentially their most incredible year yet.
Since 2025, transactions have steadily decreased faster than investment amounts, leading to an overall slight rise in company value due to agreements.
In 2025 alone, more agreements than transactions occurred, giving way to an uptick.
Significant Population Does Not Imply Big Venture Capital Industry And Vice-Versa
Situations vary dramatically across Europe. While certain nations like Germany, Britain, or Scandinavia may have achieved economic prosperity recently, others, such as Poland, still face more significant obstacles ahead.
Rude Baguette created this table by using data from EVA's 2012 Yearbook; its purpose is to demonstrate differences in investment levels across regions, particularly between North and South countries.
It shows stark disparities.
Spain is a Good Example of How Things are Changing in the Slower Markets
These countries all share one thing in common: an economy in trouble and the necessity to identify new sources of growth.
Many initiatives focused on technology seem to exist across these nations. Spain, our home base, has witnessed significant developments over the past months in its startup and technology sector.
Not only have there been significant exits like Odigeo eDreams EUR1,5bn IPO, but there has also been an upsurge in venture capital firms offering to fill investment gaps; two such examples being Seaya Ventures and Swanlab Ventures with experienced teams willing to invest in series A funding rounds such as these firms provide.
Exits are More Frequent Than Ever
An Earlybird Venture Capital deck (2012) from Berlin states that total venture-backed liquid events over the last 24 months totaled $15 billion, an astounding achievement for Europe as an ecosystem as exits are critical components in driving technological industry growth; successful investors and entrepreneurs may use such events as springboards for starting or funding new businesses after such exit events take place.
Fintech is One of Europe's Greatest Strengths
Each tech ecosystem carries both advantages and drawbacks, depending on which sectors attract talent and capital in particular - for instance, fintech is one such sector in Europe that draws talent and investment alike.
Data shows that startups in the financial and tech sectors raised an unprecedented EUR166m during Q1 of 2025. Secured significant amounts, showing Europe (especially London ) has what it takes to become a leading center of fintech innovation.
These statistics highlight the future potential of European technology. While progress may not always be swift, Europe is making strides forward.
Our future articles will analyze these sectors further, along with interviews of key figures across Europe as well as guest blog posts - so stay tuned on Twitter to stay up-to-date and follow us!
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Innovations in the Startups Scene
An effective strategy for driving innovation across Europe should incorporate a vision or purpose statement as there are usually no concrete goals; see Driving Innovation Projects.
Furthermore, other perspectives must also be taken into consideration to guarantee innovation projects are successful; using such statements as guides may assist innovative projects by determining their likelihood of success as well as any threats they face.
Innovation can occur across any field and from various perspectives. To be truly innovative in practice, it is vitally important to take multiple angles into account in our practical work - specifically customer, business, technology, relevance/buy-in from company stakeholders/risk considerations, etc.
Focusing on these perspectives allows innovators to develop projects more efficiently while decreasing risks associated with late discovery.
Furthermore, discovering and developing projects in these areas usually begins quickly with limited resources required.
Customer Perspective
Customer perspective refers to understanding both customers and users (which are sometimes different). We should first define our target audience so our efforts are directed more efficiently at one group rather than attempting to meet all peoples' needs simultaneously.
Conducting market analyses on various segments in Europe may provide valuable clues as to who our primary audience should be.
After selecting our target audience, we must gain an understanding of their needs and drivers. Following this same strategy allows top developers to establish new internal methods.
When creating such changes internally, user groups comprise those working on it while clients fund it all.
Verification that our solution or value is relevant and accurate for target audiences and whether they would pay for them are essential components to successful innovation implementation and market release.
Furthermore, when thinking about expanding client bases, it's also vital that we consider all means available to expand them effectively.
A Business Perspective
Business perspectives can be divided into two components. First is the business perspective, and second is the market.
When thinking about markets, it is crucial to examine both their size and dynamics; what share we own; who our competitors and alternatives are; as well as uncover who are key stakeholders within a particular project; their interests are explored further, and who has been included within these projects. Next would come looking into ways you could enter this particular marketplace - such as: "How will we achieve my desired market share"?
Finding an efficient business model is critical. What kind of revenues and costs we will generate, as well as its implication for scaling it across Europe, must also be investigated in depth.
Furthermore, when can the model be launched and when does it break even, as well as where will it obtain sufficient investments needed for its successful launch?
The Technology Perspective
Technology is an integral component of the European Startup Scene. Can we construct what we create, understand the processes involved, and whether the technology exists? This perspective becomes particularly pertinent if one's innovation involves different working practices: one must determine how this new way can be realized in practice and implemented successfully.
How can we overcome them, identify obstacles and minimize them? Additionally, we discuss IP protection and patents from a technology viewpoint.
Afterward, it will be essential to figure out how we will get from where we are now to our desired goals; do we possess sufficient resources and know-how? Finally, a plan must be drawn up that helps advance innovation.
Relevance and Buy-In Perspective
Relevance and buy-in involve finding investors to back innovation within your organization, taking into consideration your vision, mission, and strategy as we seek alignment of what we wish to accomplish with larger goals and visions.
Furthermore, internal sponsors or investors who will invest and anchor this project long-term should also be identified and sought.
Early intervention of internal stakeholders helps the project gain internal support more likely, thus increasing its likelihood of survival and no cancellation.
Establishing early relationships helps find innovative angles budget holders and investors can appreciate, building their trust over time. Furthermore, discuss any innovations with internal stakeholders while finding methods of implementation and discussing them amongst themselves.
The Risk Perspective
Risk analysis should serve as a powerful reminder when it comes to project evaluation; early identification of major risks allows us to stay focused on what's genuinely essential while mitigating and mitigating their skepticism from stakeholders and anticipating and reducing potential concerns that they might voice against the venture.
Furthermore, hiring developers in Europe helps determine when it may no longer make sense to continue; projects with too high risks of failing to create viable business models may no longer warrant continuation.
Summary
Europe's startup ecosystem ranks highly but cannot match up against that found in the US with its free market and aggressive approach to startups.
Berlin, Amsterdam, Moscow, and Paris Stockholm are all prominent and long-established startup hubs that exist here; government support, regulation, and taxation restrictions pose barriers; however, the mindsets of entrepreneurs may also pose limitations that are slowly altering as time progresses.
Paul is a highly skilled Full Stack Developer with a solid educational background that includes a Bachelor's degree in Computer Science and a Master's degree in Software Engineering, as well as a decade of hands-on experience. Certifications such as AWS Certified Solutions Architect, and Agile Scrum Master bolster his knowledge. Paul's excellent contributions to the software development industry have garnered him a slew of prizes and accolades, cementing his status as a top-tier professional. Aside from coding, he finds relief in her interests, which include hiking through beautiful landscapes, finding creative outlets through painting, and giving back to the community by participating in local tech education programmer.
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