Luxembourg jumped over 50 spots in Startup Genome’s 2026 ranking, as Europe’s AI funding gap with the US keeps widening.
Startup Genome’s Global Startup Ecosystem Report 2026 confirms Artificial Intelligence as the force reshaping startup hubs worldwide. AI-native startups are pulling away from the rest of tech, with Series A funding for AI-native business models growing 58% a year since 2023.
Exits rebounded too, up 164% year-on-year to nearly $800 billion globally, yet Europe captured only 11% of that value despite 37% of exit volume, a sign firms there still exit at lower valuations than in the US.
Europe “now generates as many startups as the U.S.” but risks falling behind, warns Clark Parsons, CEO of the European Startup Network, pointing to “massive imbalances in the AI economy” as hyperscalers pour hundreds of billions into infrastructure and compute.
Amid this backdrop, Luxembourg stands out: the Grand Duchy climbed more than 50 positions to enter the 81-90 range of the Top 100 Emerging Ecosystems, its best showing yet, lifted by stronger funding and R&D scores.
