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Luxembourg has emerged as a vibrant hub for AI innovation, fostering a dynamic ecosystem of startups and scaleups that leverage artificial intelligence to drive technological advancements across various sectors.
Luxembourg has emerged as a vibrant hub for AI innovation, fostering a dynamic ecosystem of startups and scaleups that leverage artificial intelligence to drive technological advancements across various sectors.
Empowering national AI startups is part of Luxembourg’s broader ambition to lead in responsible and human-centric AI, as outlined in the Luxembourg AI Strategy. The strategy promotes a sustainable, data-driven economy by investing in AI skills, research, innovation, and ethical deployment.
To complement this startup-focused view, the Luxembourg AI Ecosystem Mapping offers a wider perspective, including stakeholders ranging from startups, corporates, research institutions, public bodies, and support organizations across the national AI value chain.
This article explores the national AI startup ecosystem and was conducted in August 2025, based on a dataset of startups and scaleups active in Luxembourg and founded since 2005. To be included, companies must offer a product that is based on, integrates, or develops artificial intelligence (AI) technologies.
AI is broadly defined to encompass a range of technologies including machine learning, deep learning, natural language processing (NLP), computer vision, and other related fields.
The primary source of information is the public Dealroom database, which was cross-referenced with the AI mapping developed by Luxinnovation to ensure accuracy and completeness.
The startups and scaleups listed on the Dealroom database follow those criteria: rapidly scaling/scalable entities, maximum 20 years old, innovative by design and active in Luxembourg (headquarters, founding place, or a regular office).
As the database is collaborative, startups not currently listed are encouraged to create a profile to be included in future analyses.
As of August 2025, over 200+ startups leveraging AI technologies are active in Luxembourg, representing 27% of the national startup ecosystem. Notably, 76% of these AI startups are headquartered in Luxembourg, underscoring the country’s role as both a creator and adopter of AI innovation.
The number of AI startups has nearly doubled since 2020, reflecting the rapid integration of AI across sectors. This growth has accelerated in recent years, with a record 28 new startups integrating AI launched in 2024 alone. These figures point to a young, fast-evolving ecosystem that is gaining momentum and maturity, driven by both local talent and supportive national strategies.
Figure 1: Number of AI startups in Luxembourg per creation year
Source of data: Dealroom
In terms of team size, most AI startups (44%) operate with small teams of 2 to 10 employees worldwide. This is typical for early-stage companies, allowing for agility and fast iteration. However, it also highlights common challenges such as limited resources and the need for specialized talent. These lean teams are laying the groundwork for future growth as the ecosystem matures.
38% of these startups have offices outside of Luxembourg. Globally, these startups hire 14000+ people worldwide.
Figure 2: Percentage of Luxembourg AI startups per worldwide team size
Source of data: Dealroom
The Luxembourg AI startup ecosystem shows a strong concentration in enterprise software, which leads with 72 startups, followed by fintech (41) and health (33). This reflects the country’s strategic focus on B2B innovation, financial services, and digital health.
Notably, space tech also emerges as a significant niche with 20 startups, aligning with Luxembourg’s national investment in the space economy.
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Figure 3: Number of Luxembourg AI startups per industry
Source of data: Dealroom - A startup can be classified in up to 2 industries.
43% of AI startups in Luxembourg have secured funding since their creation, with 24% raising at least €1 million. At the same time, 19% (41 startups) remain at the pre-seed stage, having raised less than €1 million, highlighting a healthy pipeline of early-stage ventures.
Among the funded startups, the average amount raised is €7 million, though the median stands at just €160k, reflecting a wide range of funding levels and a few large outliers.
In total, Luxembourg-based AI startups have attracted €2.3 billion in funding to date.
Figure 4: Percentage of Luxembourg AI startups per total funding range
Source of data: Dealroom
Over the past decade, enterprise software, space and fintech have led in terms of early-stage AI investment (Pre-Seed 0-1M€, Seed 1-4M€, Series A 4-15M€), a reflection of Luxembourg’s strategic positioning in both digital innovation and space technologies.
Figure 5: Early Stage Funding Allocation per Top 10 Industries
(in M€)
Source of data: Dealroom
Zooming in on 2025, 13 funding rounds involving AI startups have been recorded on Dealroom during the first semester (H1), totalling 47.2 M€ across all stages.
Comparing to H1 2024 where only 9.7M€ were raised by startups using AI, this marks a significant YoY growth.
During 1st semester 2025, AI startups have captured 47% of total investment amount and accounted for 43% of all funding rounds raised by startups operating in Luxembourg.
Historically, AI investment in Luxembourg peaked in 2020, declined in the following years, and has been steadily rebounding since 2023. This renewed momentum mirrors global trends in AI adoption and reflects the country’s commitment to building a data-driven, AI-enabled economy.
Figure 5: AI share of total funding in Luxembourg in terms of number of rounds and amount €
Source of data: Dealroom
