Luxembourg AI startups and scaleups

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 organisations across the national AI value chain. 

Here we explore the national AI startup ecosystem. Our analysis was conducted in June 2026, based on a dataset of startups and scaleups active in Luxembourg and founded since 2006. 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 align with the following 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 mid-2026, 263 startups leveraging AI are active in Luxembourg, representing 31% of the national ecosystem. Among those, 80% are headquartered in Luxembourg, underscoring the country’s role as both a creator and adopter of AI innovation. 

The number of AI startups has more than doubled since 2020, reflecting the rapid integration of AI across sectors. This growth has accelerated in recent years, with a record 41 new startups integrating AI launched in 2025 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. 

Over 2023-25, 230+ new startups were created in Luxembourg, nearly half of them (45%) are leveraging AI.

38% of AI startups in Luxembourg have secured funding since their creation, with 21% raising at least €1 million. Meanwhile, 17% (46 startups) remain at the pre-seed stage, having raised less than €1 million, indicating a strong pipeline of early-stage ventures. 

Overall, AI startups show a higher funding rate than the broader ecosystem (38% vs. 31%), particularly at pre-seed and seed stages. However, as explored below, funding rounds tend to be smaller than the ecosystem average.

Since 2020, funding for AI startups headquartered in Luxembourg has risen sharply, stabilising at around €50–60M between 2023 and 2025, signalling a more mature phase of development. At the same time, the number of rounds has remained relatively high, reflecting sustained investor activity. 

In H1 2026, a record has already been reached, with €80M raised across 9 private funding rounds, suggesting a clear shift toward larger deals. 

Over time, the average round stands at €3M versus a €500K median**, highlighting strong capital concentration in a small number of top-performing startups, while most companies raise smaller amounts. Both metrics remain slightly below the overall HQ Luxembourg ecosystem, indicating that AI startups have historically relied on smaller, incremental rounds. 

However, 2026 marks a turning point, with significantly larger average rounds, now exceeding the broader ecosystem and signalling a move into a scale-up phase.

Until 2023, the share of AI-related funding rounds consistently exceeded the share of capital raised, indicating below-average ticket sizes, despite a steady increase in both metrics. Notably, the share of funding grew faster than the share of rounds, highlighting AI’s rising weight in total capital allocation. 

From 2024 onward, this trend reversed, with AI capturing a slightly higher share of funding than of rounds. In 2026 to date, the gap has widened further, with ~80% of funding vs ~60% of rounds, clearly signalling a shift toward larger-than-average deal sizes.