This study describes the main features of and recent trends in the venture capital (VC) market in Italy, an important part of the financial system that supports the creation and development of high-growth companies (start-ups). Specifically, it explores the possible reasons for its slower growth compared with other leading euro-area countries and the current efforts to foster its development at the domestic and EU level.
In 2021-23, investments in the Italian VC market were only one-fifth of those in France and Germany. The reasons for this gap are mainly linked to three characteristics of the Italian market: the number of innovative projects that lead to start-ups is relatively low, the VC fund sector is underdeveloped, and the difficulties in the investment exit phase are great. It is important that initiatives supporting market growth address the obstacles at each stage of a start-up's development.
