Venture Capital, invested 1.2 billion in Italian startups in 2024 – VeM 2024 Report

Better data compared to 2023 which, when added to those in innovative companies founded abroad by Italians, reaches the value of 1.9 billion. The operations decrease, the early stage chain is increasingly mature.

Growth of investments in innovative Italian startups after the slowdown recorded in 2023, with a reduction in the number of operations. These are the main findings that emerge from the Venture Capital Monitor-VeM 2024 Research Report, officially presented in Milan on Tuesday, February 18.

The study, carried out by the Venture Capital Monitor – VeM Observatory 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 constantly monitor the institutional early stage activities carried out in our country.

Italy's venture capital, in 2024, confirms the positive indications that emerged in the first six months of the year, with Italian startups raising 1.2 billion euros from domestic and international operators, distributed over 300 operations between initial and follow-on (it was 1.4 billion on 330 rounds in 2023). Considering only new investments, moreover, the operations were 223 compared to 273 in the previous year.

The amount invested in foreign startups founded by Italian entrepreneurs also increases, i.e., more than 700 million euros distributed over 30 rounds (over 300 million on 28 operations in 2023).

The sum of the two components brings the total value of investments in startups with an Italian matrix to 1.9 billion on 330 rounds: relevant data after the record set in 2022 (2.2 billion), followed by the slowdown recorded in 2023, with the Italian innovative ecosystem aligning with the European ones. Data that do not include Business Angels, after a year in which their investments have increased substantially, with special mention within the VeM Report.

The contribution of venture capital and corporate venture capital

As for corporate venture capital activities, 2024 corroborates what has emerged in recent years. In fact, companies continue to be present in venture capital rounds, with corporates preferring investments aimed at new startups (initial), or those in the development phase. In this sense, the presence of corporates in 26% of the total operations is exemplary, with growth compared to 2023 continuing after the positive signals that emerged in the first half of last year.

If we look exclusively at startups established in Italy, venture capital and corporate venture capital in 2024 invested a total of 592 million euros distributed over 182 operations. Syndicate activities involving Business Angels, moreover, recorded investments of 61 million euros on 88 rounds, while Business Angels alone play an increasingly important role as demonstrated by the 47 million euros invested on 102 rounds.

Overall, therefore, the venture capital chain in Italy has invested more than 1.2 billion on 372 operations, which, adding also the innovative foreign realities with an Italian matrix, have reached a value of 2 billion euros, distributed over 406 rounds. Data in line with post-pandemic surveys, showing the maturity of Italian venture capital.

The slowdown in Technology Transfer investments

The rise in Technology Transfer (TT) investments stops. In fact, while in 2023 the amount raised by innovative companies active in this transversal sector was 232 million euros distributed over 67 rounds, the value contributed by the Italian early stage chain recorded a decline in 2024, standing at 223 million distributed over 119 operations.

"Physiological" evidence after the acceleration in the first half of 2024, due to the end of the investment period of the ITAtech platform on the one hand, and the full operation of the funds supported by the Tech Transfer FoF of CDP Venture Capital SGR and the national hubs on the other.

Geographical distribution of investments in Italian startups in 2024

Moving on to the "geography" of investments in Italian startups in 2024, the trend that sees the largest number of target companies, 70, based in Lombardy (36% of the market, it was 44% with 124 target companies in 2023) is confirmed. Furthermore, the rise of Piedmont continues, which after surpassing Lazio in the first half of last year, remains firmly in second place covering 15% of the domestic market (compared to 8% in 2023).

A scenario in which the North-West of the country captures more and more investments, with Lombardy and Piedmont together being home to 51% of the innovative target companies, with Lazio following them (9%, or four percentage points less compared to 2023).

Sectoral distribution: the rise of biotech

As for sectoral distribution, ICT is confirmed as the most interesting for Venture Capital investors. Exactly as in previous years, in fact, ICT dominates the scene, catalyzing 36% of the total amount invested in Italian startups (compared to 32% in 2023). Specifically, ICT consists of 28% of operations involving startups active in digital consumer services, while the remaining 72% operate in enterprise technologies.

Following are Biotech startups, which in 2024 have confirmed to be particularly interesting, once again demonstrating the potential of the sector. It is therefore not surprising the percentage of target companies working on Biotechnologies, just as the ability to catalyze initial investments (9%). Virtual third place for the Fintech sector (8%), followed by Energy and Environment and Healthcare, which in 2024 attracted 7% of investments in Italian startups in 2024.

The rise of the VeM-i index

"The growth of capital invested in 2024 (+39%) brings the venture capital market measured by VeM to the threshold of 2 billion euros overall. The decrease in the number of fundraising rounds confirms a greater selection of operations; a trend confirmed by the record of follow-on investments in companies already invested in other rounds," comments Luca Pagetti - Head of the Startup Financing and Growth structure at Intesa Sanpaolo Innovation Center.

"The growing interest of investors in the Energy & Environment, Biotech, and Healthcare sectors is confirmed, a positive sign for technology transfer in our country in key sectors for future development. Through Intesa Sanpaolo Innovation Center, our Group supports the growth of spin-offs and startups with ecosystem initiatives and territorial support. The investments of the SEI (Innovation Ecosystem Development) fund managed by Neva SGR, a company 100% controlled by Intesa Sanpaolo Innovation Center, are further confirmation of our commitment," emphasizes Pagetti.

"In 2024, Business Angels invested independently over 74 million euros, almost double the resources of 2023, and the target companies also increased by 41%. After the slowdown of 2023, we are therefore back to growth, and the entire Italian Venture Capital market is again stabilized on the numbers that have characterized it in recent years, well over 1 billion euros," concludes Paolo Anselmo - President of IBAN.