April 20, 2024
When it comes to startups, little Luxembourg packs a big punch


Sandwiched between Germany, France, and Belgium, the tiny country of Luxembourg is one of Europe’s smallest, but also its wealthiest — its residents enjoy the second-highest per capita income in the world.

Key to this success is its thriving financial services sector which has helped draw several big names to the Grand Duchy, including the European Investment Bank and Amazon. It’s no surprise then that fintech has been identified as the tech sector with the greatest growth potential in the region. 

Luxembourg was also one of the world’s biggest investors in AI per capita in 2021, surpassed only by Israel, the US, and Sweden (in that order). The National Research Fund has allocated €200mn to AI research projects over the past five years. To help power these advancements is Meluxina, one of Europe’s most powerful supercomputers.  

While only home to 600,000 people, Luxembourg’s thriving economy, modern infrastructure, international workforce, and generous government grants, which cover up to 80% of R&D costs, allow it to punch above its weight as a hub for emerging tech startups.   

Well-known success stories include social media analytics and monitoring tool Talkwalker, and online jobs board JobToday. OCSiAI, a producer of graphene nanotubes, made headlines in 2019 when it joined Europe’s growing list of tech unicorns.  

an image of the house of startups in Luxembourg