European AI Startups Funding: $8B Raised in 2024

France to Host Global AI Summit Amidst European Startup Boom

Within days, France will be the center of attention as it hosts the Artificial Intelligence Action Summit. Numerous heads of state are converging on Paris to engage with leading figures in the global technology sector.

Announcements are anticipated regarding substantial investments and diplomatic accords, with a particular emphasis on ensuring the safety and addressing the environmental consequences of artificial intelligence.

The French AI Report: A Snapshot of the Ecosystem

Prior to the summit’s commencement, Galion.exe, Revaia, and Chausson Partners collaborated to produce the French AI Report. This report provides an analysis of the prevailing trends within the French technology landscape.

While the United States and China currently dominate the conversation, particularly with OpenAI’s fundraising efforts and the emergence of DeepSeek, Europe is experiencing significant growth in its own AI startup scene.

Funding Surge in European AI Startups

In 2024 alone, AI-focused companies accounted for approximately 20% of all venture capital funding within the European region.

This translates to roughly $8 billion in funding allocated to AI startups throughout the year. Further expansion of this figure is highly probable, given the nascent stage of many of these ventures.

A significant portion – 70% – of the capital secured by AI startups in 2024 was directed towards seed and Series B funding rounds.

Regional Investment Hubs

Countries within Europe that consistently attract venture capital have also become focal points for AI investment. The U.K. currently leads, followed closely by France and Germany, with the Nordic nations demonstrating strong performance relative to their population size.

As AI companies mature, they increasingly attract investment from international sources. U.S. venture capital firms represent around 50% of the funding provided to AI companies at the Series C stage and beyond.

France’s AI Landscape

According to Clara Chappaz, minister delegate for artificial intelligence and digital technologies, France is home to “more than 750 startups that have created 35,000 jobs and operate in all areas that are transforming today’s society.”

Furthermore, the nation boasts a robust AI research community, comprising 2,000 scientists and 600 doctoral students dedicated to the field of artificial intelligence. A notable number of French engineers and researchers also contribute to AI innovation within U.S.-based companies.

Beyond Foundation Models: Rising Stars in France

The French AI Report identified and analyzed the top 400 AI startups in France to pinpoint emerging leaders. While companies like Mistral AI and Poolside are well-known, the majority of AI startups are concentrating on applications beyond the development of foundational models.

Several companies are focused on optimizing data workflows, improving inference performance, and creating intelligent agents to enhance productivity. Examples include Linkup, Kestra, ZML, and Dust.

Focus on Vertical Applications

The majority of AI startups in France are prioritizing applications tailored to specific industries. The report highlights health and climate as particularly important areas of focus.

Owkin and its spin-off, Bioptimus, are at the forefront of health tech innovation. This sector encompasses a diverse range of companies specializing in imaging tools, drug discovery, and improvements to medical treatment.

Beyond productivity enhancements for office environments, artificial intelligence is also driving innovation in climate technology. Agtech, carbon management, and energy management are key areas of interest, alongside emerging companies developing new materials, such as Altrove.

Resources and Future Outlook

A comprehensive list of the companies included in the report is available online. Many startups are also concentrating on streamlining specific job functions – including sales, customer care, HR, and legal – through the application of AI.

While not all companies will endure, many are experiencing rapid growth. The AI revolution is still in its early stages, and the expansion of the AI industry appears to be more geographically distributed than initially anticipated.

Further coverage of the Artificial Intelligence Action Summit in Paris will be provided.