How went the Venture Capital in Italy in the first half of 2024 - First half report 2024 vem

Reduction in operations, but increase in the overall amount of investment in innovative Italian startups compared to first half of last year. This is the balance sheet for the first semester of Italian venture capital in 2024 that emerges from the Venture Capital Monitor – VeM Research Report, officially presented on 16 July in Milan.

The study carried out by the Venture Capital Monitor Observatory - VeM active at LIUC Business School with the contribution of Intesa Sanpaolo Innovation Center and KPMG and the institutional support of CDP Venture Capital SGR and IBAN - aims to permanently monitor the institutional early-stage activities in our country.

The Italy of venture capital aligns itself once again with the global trend in another first half of the year still characterized by an uncertain geopolitical scenario, but records a significant growth in investments in startups and scaleups founded by Italians abroad: if from one on the one hand the number of operations is reduced (12 compared to 19 in 2023); on the other the overall amount invested increases from 179 to 220 million euros.

Regarding innovative Italian startups, the rounds grew slightly (+1.5%) compared to the first quarter of this year (68 against 67 for a total of 135 operations between initial and follow-on), but there was a sharp slowdown in the comparison with the first half of last year when there were 177 operations (-24%), mainly due to the significant reduction in initial rounds (94, they were 123 in 2023).

However, the amount invested by domestic and non-domestic operators in innovative Italian startups is increasing, with the first half of 2024 closing at 600 million compared to 510 in the first six months of last year. By adding this component to the amount invested in foreign startups with Italian founders, the total goes from 689 million in the first half of 2023 to 870 million euros in 2024.

Contradictory data but with a relatively easy explanation, given that after a 2023 in which there were no mega deals, the first half of this year registered two 5-figure rounds: 100 million in the one involving D-Orbit; 140 million euros in the operation in which Bending Spoons was the protagonist.

Technology Transfer: the rise is constant

The growth of the total invested in TT (Technology Transfer) continues, driven in the last 18 months by the important boost given by the activity of poles and funds promoted by CDP Venture Capital SGR, with the latter supported by the impact of the ITAtech platform, with the overall leverage effect due to the aforementioned initiatives on third-party capital exceeding 400 million euros. Taking into consideration the activity carried out by investors and TT hubs active in our country, since 2023 over 375 million have been invested across 172 rounds, with 115 million in 43 operations in the first six months of 2024: a figure already above average per year invested between 2018 and 2022.

Corporate Venture Capital and the early-stage supply chain: investments are growing, rounds are decreasing

As regards corporate venture capital activity, in the first six months of 2024 the considerable presence of companies in venture capital rounds is confirmed, with corporate participation in 28% of investment operations to support new entrepreneurial realities or those that are in the first development phase.

As regards innovative startups based in Italy, VCs and corporate VCs invested 133 million distributed over 74 rounds in the first half of the year (there were 272 million over 82 rounds in 2023), with syndicate activities between venture capital, corporate venture capital and business angels recording investments of 476 million in 49 operations (compared to 224 million in 52 operations in the first six months of last year), and business angels alone that invested 23 million in 16 rounds (15 million in 17 rounds twelve months does).

The total of the aforementioned activities determines investments in the early-stage supply chain in Italy equal to 623 million euros distributed over 139 operations, compared to approximately 525 million in 152 rounds last year. The contraction therefore remains in comparison with the record-breaking 2022, when in the first six months of the year it was already close to one billion euros (976 million) with 198 transactions: data widely expected and in line with the global contraction.

ICT firmly in the lead, surge for biotechnologies

Looking only at intital investments, ICT confirms itself as the sector that catalyzes the interest of investors standing at 38% of the total operations, although slightly down compared to the 40% recorded in the first six months of last year: 25% of the operations involve innovative startups in the digital services sector for consumers, with the remaining 75% aimed at businesses. The growth seen for startups active in biotechnology is significant, rising from 3% of the total invested in the first half of last year to 11% of the total collection. 

Geographical distribution of investments: Lombardy leads again, Piedmont second after overtaking Lazio

As regards the geographical distribution of initial investments, Lombardy confirms its lead with 38% of target companies: a decrease compared to 50% in the first half of last year. The rise of Piedmont is decisive, setting the tone and collecting 15% of investments in the first half of the year, surpassing Lazio, which climbed to third place with a share of 11%.

Another relatively surprising news that follows what was revealed with the presentation last June 10th in London of the Global Startup Ecosystem Report 2024 (GSER) by Startup Genome and Global Entrepreneurship Network. Turin, in fact, has entered the top 100 of emerging innovative ecosystems for the first time given the 20 positions "earned" in 12 months according to the authoritative report created thanks to the collaboration of Intesa Sanpaolo Innovation Center, Fondazione Compagnia di San Paolo and Startup Genome to analyze and enhance the entrepreneurial ecosystem of the Piedmontese capital (already in the top 40 for ability to attract talent last year).

Returning to the VeM relating to the first six months of 2024, in conclusion the data highlights a marked slowdown with regards to startup capital, which fell from 88 to 43 operations, while seed rounds fell slightly, going from 57 in the first half of 2023 to the 47 recorded in the first half of this year.