Luxembourg startup ecosystem 2025: key insights

Luxembourg's startup ecosystem has grown to more than 810 active startups and scaleups in 2025, with 84% headquartered in the country. This sustained growth reflects not only a rise in company numbers, but also the progressive strengthening of the ecosystem's foundations.

The startup community itself has also expanded and professionalised, supported by a dense network of public and private actors. Together, these stakeholders provide increasingly coordinated support across the entrepreneurial journey, contributing to a more structured, navigable and resilient environment. Today, the ecosystem comprises more than 15 incubators, accelerators and innovation hubs, complemented by dedicated programmes addressing different stages of company development.

AI startups drive Luxembourg's innovation growth

AI has become a central driver of entrepreneurial activity in Luxembourg. More than 240 startups now use AI as a core component of their products or solutions, representing a twofold increase in the AI-driven ecosystem since 2020. This expansion is underpinned by a young innovation landscape, with 55% of AI leveraging startups still in early stages and under five years old.

Momentum accelerated further in 2025, when half of all funding rounds involved startups integrating AI. This trend aligns with Luxembourg’s national strategy for digital sovereignty by 2030, which places data, AI and quantum technologies at the core of the country’s economic future and is supported by infrastructure such as Tier IV data centres, Europe's highest-reliability standard, and the MeluXina supercomputer.

In support of this direction, the ecosystem benefits from dedicated frameworks designed to facilitate AI adoption across sectors. Initiatives such as the Luxembourg AI Factory provide a coordinated entry point to shared resources and expertise, while complementary environments like the AI Experience Centre at the Luxembourg House of Financial Technology enable practical experimentation and learning.

Key sectors: from fintech to healthtech and cleantech

While enterprise software and fintech remain strong pillars, reflecting deep expertise in SaaS and B2B solutions, the ecosystem has become increasingly diversified over recent years. Sectors such as space technologies, healthtech, energy and cleantech, cybersecurity and mobility now represent a growing share of startup activity, contributing to both economic vitality and resilience.

This evolution reflects Luxembourg’s broader economic strategy, where startups help build activity in areas with high innovation potential. One illustration is mobility, where Startup Luxembourg and Technoport’s Automobility Incubator participate in European initiatives such as the EU Startup Prize for Mobility. The 2026 edition launched in Lisbon and will conclude during Luxembourg Venture Days, underlining continued engagement in this field.

How Luxembourg supports startups from seed to scale

Support for companies at the earliest stages continues to shape Luxembourg’s startup landscape. In 2025, startups active in the country raised €407 million, representing a 52% increase compared to 2024. This funding momentum is supported by policy initiatives such as the government’s 10‑point action plan for startups, published in March 2025 by the Ministry of the Economy and the Ministry of Finance. Building on the national “From Seed to Scale” roadmap, the plan sets out targeted measures to strengthen early‑stage financing and to establish clearer pathways for scaling from Luxembourg into European markets.

At the same time, the ecosystem is gradually placing greater emphasis on growth beyond the initial stages. Alongside early support, increasing attention is given to strengthening scaling pathways and supporting the transition from startup to scaleup. This includes initiatives such as Fit 4 Scale, Luxembourg’s results‑driven acceleration programme for companies with strong growth potential, as well as complementary approaches that support international expansion, for example through the Entrepreneur in Residence programme leveraging Luxembourg’s diplomatic network.  Hosting a major European event such as the Luxembourg Venture Days, further contributes to connecting scaling companies with investors, industry partners and European markets.

Luxembourg's role as a European innovation hub

International engagement has become an integral feature of the ecosystem’s development. Around 27% of startups active in Luxembourg operate across borders, either through offices abroad or by being headquartered outside the country. This pattern reflects an environment that supports both inward and outward expansion, enabling international companies to establish a presence while supporting locally based startups in extending their reach.

Luxembourg’s central location, open economic outlook and strong connectivity continue to support this role within Europe, offering a practical base for companies aiming to develop and scale activities across the European market.

2025 startup ecosystem report: what the data shows

The findings of the 2025 report portray an ecosystem that has gained structure, depth and strategic alignment over time, while maintaining a strong capacity for innovation and renewal. This evolution reflects consistent development across core sectors, alongside increased confidence among organisations operating in and from Luxembourg.

The report is based on data available on the Dealroom database, a global startup data platform used by Startup Luxembourg to track ecosystem metrics. To dive deeper into the results and explore additional success stories, including OQ Technology and MDsim, consult the full report. 

Detailed reports on women startup founders and AI startups and scaleups are also available.