Investments in Italian startups will exceed 2 billion - VeM 2022 report

1 March 2023
Innovation Center, Finance, Startup Development

In a global context dominated by uncertainty, thanks to the advantages of still being "small and isolated", the venture capital market in Italy continued to grow during 2022 following a trend that began in 2018.

Indeed, last year the total amount of domestic investments and non-domestic investments in Italian startups - initial and follow on - more than doubled to almost 1.9 billion euros distributed in 349 rounds (in 2021, the amount was close to 900 million with 291 operations). Instead, investments in innovative realities founded by Italians but based abroad have decreased significantly (from 919 million euros to 302) with less transactions (26 to 21).

Combining the two components, the total amount invested by domestic and foreign operators in Italian startups in 2022 amounted to 2.2 billion euros distributed in 370 transactions (in 2021 they were 1.9 billion with 317 transactions).

The 2022 Research Report of the Venture Capital Monitor (VeM) officially presented on tuesday February 28th in Milan and realized by the Venture Capital Monitor Observatory (VeM) active at the Liuc Business School with the contribution of Intesa Sanpaolo Innovation Center and E. Morace & Co. Legal Studio in order to constantly monitor early stage activities in the country, certifies it.

From the AIFI analysis contained in the Report, emerges how domestic investors have doubled their investments in Italian startups (from 466 million to 1 billion), and how international investors have invested 857 million in just 32 rounds compared to the 526 collected in 2021.

The VeM 2022 report analyzes investments in Italian startups over the last year The VeM 2022 report analyzes investments in Italian startups over the last year

Technology Transfer and Corporate Venture Capital role in the early stage supply chain

Total investments in Technology Transfer (TT) in 2022 amounted to approximately 100 million euros on 46 transactions. Results achieved also thanks to the impact of the funds of the ITAtech platform which to date have raised a total of over 300 million euros, making 118 investments since 2018 for a total amount of over 160 million euros (co-investors included).

Talking about corporate venture capital role, corporate participation in total investments to support emerging businesses or in the initial stages of development stood at 26% (-6% compared to 2021).

For startups based in Italy, venture capital and corporate venture capital invested 371 million Euros in 205 rounds. Syndication between venture capital, corporate venture capital and business angel have recorded investments of almost 1.5 billion euros on 144 transactions, while the BA alone have contributed 79 million in 72 rounds.

The total of these activities leads the early stage chain in Italy to have invested over 1.9 billion euros on 421 transactions. Adding the investments in foreign startups founded by Italians, the total amount is 2.2 billion euros distributed in 445 rounds.


Geographical and sectoral distribution of investment

As for initial investments, the region that has the largest number of target companies is always Lombardy (124) "covering" 44% of the market. Then Lazio (13%) and Piedmont (10%).

Turning finally to the sectors, the catalyst for investments is always the ICT with a share of target companies equal to 39% of the total (+4% on an annual basis). The operations that have seen active startups in the ICT field are constituted for 40% from active truths in the segment of the digital services for the consumers, with remaining 60% focused on the technologies for the enterprises. In addition to ICT, investments were directed towards financial services (10%), followed by Energy and Environment and Healthcare (8%).


The Intesa Sanpaolo Innovation Center’s support for startups growth

"In a contrasting international financial context, venture capital investments in Italy in 2022 confirmed their growth exceeding the threshold of 2 billion euros, accelerating the path of our country’s approach to international best practices" explains Luca Pagetti - Head of Startup Growth Financing Department of Intesa Sanpaolo Innovation Center.

"Our Group, in the 2022-25 business plan, confirms through Intesa Sanpaolo Innovation Center its support for the growth of startups, also with ecosystem initiatives and in support of territories. The establishment in 2022 of the ‘SEI Sviluppo Ecosistemi di Innovazione’ fund managed by Neva SGR, a company wholly owned by Intesa Sanpaolo Innovation Center, is a further confirmation of our commitment", says Pagetti.

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