Italian Startup Studio

Startup studios are an increasingly popular investment vehicle worldwide. As we have seen in our previous article, they offer unique advantages for investors, and unlike traditional venture capital firms, startup studios actively initiate and build companies from the ground up, which can lead to higher investment efficiency and reduced risks.  

The unique approach of startup studios in building companies from scratch, combined with their structured processes and hands-on support, makes them a compelling investment opportunity in the ever-evolving startup landscape. 

The concept of startup studios originated in the early 2000s, and the trend has been growing globally, with over 780 startup studios across the world. In Italy, the startup studio model has gained momentum recently, with more than 15 launched in the last 5 years. 

 

Investing in Italian Startup Studios 

 

Investing in a Startup Studio in Italy offers several advantages compared to other countries. Italy is the eighth largest economy in the world, with a robust manufacturing base and a reputation for high-quality products. The country’s strategic geographic location makes it a significant logistics hub and a gateway to the European Single Market. In this context, the services industry has strongly developed in the past decades, dominating the Italian GDP and making up approximately 70% of the economy.  

Italy’s startup ecosystem has been receiving increasing government assistance and interest, with the establishment of national startup funds, strong fiscal incentives for investors, innovation hubs, and world-class acceleration, incubation, and venture-building programs. An example of this is the CDP Venture Capital Fund that directly invests in the most innovative startups and in the Italian VC ecosystem.  

Furthermore, programs and facilities offered by institutions such as the Italian Ministry of Economic Development (MISE) and the Italian Trade Agency (ICE – Agenzia ICE), are helping in providing additional funding and support for Italian startups.  

Italian Venture Capital investments reached 2.1 billion euros in 2023, representing a significant 67% increase over the previous year. The Italian venture capital market has been attracting attention from both domestic and foreign investors, with new records being set every year. 

However, the efforts are still not enough as 2023 marks a setback compared to 2022 in terms of investment in the Italian startup ecosystem. According to a study conducted by Startup Italia and presented at the “SIOS23 Winter”, with 1,140,450,846, the volume of rounds raised in the year as a whole was -51% compared to 2022. There is also a minus sign in the number of deals: 166, down 17.8%. While 62 million were raised through equity crowdfunding in 141 deals (Crowdinvesting Observatory data as of November 2023).  

These numbers point out that, with joint efforts, there is still an opportunity for investors in the Italian startup ecosystem and Italian Startup Studios like Finnovaction become an attractive option for those scouting for interesting returns in alternative assets.