London attracts more technology investment than any other city in Europe, with tech firms in the capital accounting for 8.2% of all European deals so far this year.

A study by Tornado Insider (via Alarm: Clock Euro) shows Berlin is also attracting more startups, taking 3.5% of all tech investment, and moving up from eighth place last year to third in 2007.

Startups based in Paris were second to London, attracting 4.4% of all deals, while Munich and Cambridge were fourth and fifth on 3.1% and 2.1%.

By country, UK companies attracted 30.6% of VC investment, with increased investment in Germany moving it into second place on 16.7%. France has dropped to third place, with 11% of deals.

The figures are also broken down by sector, showing that London is the European capital for internet investments, with 20.8% of all such deals, while Paris was next on 10.8%.

Further reading:

European VC investment in Web 2.0 grows in 2006