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France leads the pack for Generative AI funding in Europe, London has 3X the number of GenAI startups | TechCrunch

Jun 20, 2024 - techcrunch.com
A new report from VC Accel and Dealroom reveals that Europe and Israel, which typically account for 45% of all venture funding, are lagging in the AI sector, with their share dropping to less than half in this field. However, this could signal potential growth and interesting developments in the future. London has generated the most GenAI startups, with 27% of the 221 startups analyzed, followed by Tel Aviv, Berlin, and Amsterdam. Despite Paris being a hotbed for AI development, it ranked in the middle with 10%.

French-founded GenAI startups are leading in funding, having raised $2.29 billion to date, more than any other country in Europe and Israel. Notable AI startups in Paris include Mistral AI and Hugging Face. The report also highlights the role of major tech companies, with 25% of GenAI startups having founders who previously worked at Alphabet, Apple, Amazon, Meta, or Microsoft. Among the top 10 startups, 60% of the founders come from these tech giants.

Key takeaways:

  • London has generated the most generative AI startups, with nearly one-third of the 221 startups analyzed by Dealroom and Accel being created there.
  • French-founded generative AI startups have raised the most money, with a total of $2.29 billion to date.
  • Major tech companies like Alphabet, Apple, Amazon, Meta, and Microsoft have played a significant role in the development of generative AI startups, with 25% of these startups having founders who previously worked at these companies.
  • Accel and Dealroom's report suggests that Europe and Israel, which typically make up 45% of all venture funding annually, are lagging in the AI market, but this could signal interesting developments in the future as the region catches up.
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