Venture capital investments in Italy soared to €1.5 billion in 2024, reflecting a 28% increase from €1.17 billion in 2023. The number of funding rounds also grew, with 417 rounds in 2024 compared to 319 in 2023.
These figures are based on estimates from the Observatory on Venture Capital in Italy, conducted by Growth Capital, a tech investment bank specializing in venture capital, in collaboration with Italian Tech Alliance, the national association of venture capitalists, innovation investors, and startups. After the market correction of 2023, Italy’s VC ecosystem has regained momentum in 2024, continuing its path toward maturity that began in 2019. It is now one of the best-performing venture capital ecosystems in Europe.
In 2024, Pre-seed, Seed, and Bridge rounds represented 82% of all funding rounds, up from 78% in 2023. Meanwhile, Late-Stage rounds accounted for 43% of the total funding amount, returning to pre-2023 levels.
The overall mean deal size in 2024 remained stable, though the median deal size saw a slight decrease, due to the rise in Pre-seed rounds. Notably, Series B deal sizes showed a significant increase, although they still remain below the EU average.
The Deeptech sector led the way with the highest number of funding rounds (64) followed closely by Software (63) and Life Sciences (62).
In terms of funds raised, Life Sciences topped the rankings with €300 million, driven by large rounds like that of NewCleo. Smart City innovations followed closely with €296 million, while Software companies raised €262 million, with Bending Spoons securing a major round.
The top five deals of 2024:
In 2024, 297 distinct investors were active in Italy’s venture capital ecosystem, consistent with the previous two years. 42% of these investors were international, up from 35% in 2023 and the average of the last five years. International investors continue to play a major role in larger funding rounds.
CDP Venture Capital remained the most active investor, completing 167 deals, followed by Azimut and Vento, each with 19 deals.
The number of exits in 2024 dropped to a three-year low, with 34 transactions, down from 43 exits in 2023. This decline reflects the ongoing challenges in market conditions.
In 2024, 15 new venture capital funds were announced, bringing the total capital to €1.4 billion, three times the amount seen in 2023. This surge has brought the “dry powder” (uninvested capital) to its highest level ever. A significant portion of this growth has been driven by the launch of vertical funds targeting high-potential sectors. The funding has been evenly distributed between emerging fund managers and more seasoned investors.
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The full report is available at the following link: https://www.italiantechalliance.com/_files/ugd/ffd03c_1e8b39813f5b4fb199c50120e54baf9f.pdf