The startup ecosystem is still encountering challenges in securing venture capital funding, with minimal improvements in Q2 compared to the previous quarters, as reported by Crunchbase.
However, one sector that stands out in attracting investments is artificial intelligence (AI).
In 2024, AI has been a prominent sector in the U.S., with nearly 30 deals worth over $100 million each. Similarly, Europe is also gaining traction, with 14 such investments so far this year. Paris, in particular, has emerged as a hub for AI development, especially in generative AI.
AI startups in Europe have witnessed significant funding activity, with over 1,700 funding rounds reported this year as per PitchBook data.
Among the notable AI startups, Mistral AI stands out, having raised over $1 billion this year and continuing to attract investments. The company is known for its work in large language models and generative AI, with Paris spearheading AI innovation in Europe.
The reasons behind the substantial investments in AI include the intensive compute power required, the demand for talent, the need to pay royalties on content IP, and the interest of investors seeking high-growth opportunities.
Wayve: $1 billion
Wayve, based in Cambridge, secured a massive $1.05 billion funding round to further its autonomous driving technology. The company sells its AI technology to various carmakers, distinguishing itself by avoiding heavy reliance on expensive lidar technology.
Mistral AI, on the other hand, has raised over $1 billion this year, attracting funding from prominent investors and focusing on open-source AI technology for generative AI applications.
Helsing: $484 million
Helsing, a Germany-based defense tech AI startup, raised $487 million in July, emphasizing software development to enhance defense systems and battle analytics.
Poolside: $400 million
Poolside, headquartered in Paris, focuses on AI tools for developers to accelerate software development. The company has attracted significant investments from various backers in a round totaling $400 million.
DeepL: $320 million
Germany-based DeepL secured a $320 million funding round, aiming to scale its AI-based text translation and writing tools for enterprise customers.
H: $220 million
H, a newly established AI company, raised $220 million as a seed round in May with a focus on AI agents for task automation and decision-making.
Flo Health: $200 million
Flo Health, a London-based women’s health tracking app, attracted $200 million in funding, targeting fertility and period tracking services for users.
Pigment: $145 million
Parisian startup Pigment raised $145 million for enterprise resource planning software, integrating AI technology into its solutions.
