The rise of venture capital in Italy continues, thanks in particular to the fundamental contribution of Italian business angels, who play a key role in investing in start-ups. This is the main trend emerging from the 2022 survey conducted by IBAN, the Italian Association of Business Angels, of which 2meet2biz.com has recently joined.
During 2022, Italian business angels participated in investment transactions totalling EUR 1.62 billion, both independently and in collaboration with venture capital funds. This amount represents a remarkable 77% increase compared to 2021 and has even quadrupled in just three years, considering that in 2020 the amount recorded was only EUR 376 million.
However, it is interesting to note that the amount invested independently by business angels in Italian startups has slightly decreased compared to 2021, reaching EUR 83 million for 75 investment deals in 2022, compared to EUR 91 million for 100 deals in 2021. Despite this, the data show that deals in 2022 were on average larger than in 2021.
Significantly, syndication investment with venture capital funds remains predominant for Italian business angels, accounting for almost all the deals monitored by the IBAN Survey. The total amount invested in this way almost doubled in 2022, reaching EUR 1.5 billion, compared to EUR 812 million in 2021 and EUR 325 million in 2020. Furthermore, the number of syndication deals increased in 2022 to 153, compared to 116 in 2021. This collaboration between business angels aims to increase overall financing, reduce individual costs and share the risk in case of investment failure.
Significantly, more than half of the business angels (55%) said they intend to increase their share of assets dedicated to investing in start-ups, while 36% intend to keep it constant. This shows a strong commitment to supporting Italian start-ups, despite the economic uncertainties that have characterised the period since the second half of 2022. Startups remain the main target of investors, although seed investments are becoming increasingly attractive, with 52% of deals going to startups and 48% to seed stage in 2022.
Divestment among business angels remains a rare phenomenon, with only 10% of the sample reporting at least one divestment in 2022, on average 3-4 years after the initial investment.
Remarkably, the percentage of female business angels in 2022 exceeded 20%, representing a significant increase from the 14% recorded in 2021. Female business angels show a strong commitment to financing companies founded by other women, highlighting the so-called 'sisterhood'.
As regards the male component of business angels in Italy in 2022, they are mainly men resident in Northern Italy (45%), with executive experience (45%), and currently active as business angels (64%). Most of them have a master's degree, and 27% have post-graduate degrees. 75% of the sample is affiliated to IBAN or one of its territorial BANs, or to an Investor Club. The average assets available to business angels are between €500,000 and €2 million, of which around 12% are earmarked for angel investing, a stable figure compared to 2021, with a portfolio that includes around 9 companies, up from the previous year when there were 8.
For the first time, the IBAN Survey explored the role of ESG (Environment, Social and Governance) factors and impact investing in business angel investment decisions. In 2022, 70% of business angels said they apply ESG and/or impact investing criteria when evaluating investment opportunities. Furthermore, 25% of the sample said they pay attention to the founder team's level of interest in ESG aspects, and 40% conducted in-depth ESG investigations during the due diligence process.
Finally, the sector of greatest interest for business angels in 2022 was ICT, with 47% of total investments. Other sectors of interest include Other Services (11%), Healthcare (9%) and Food (8%).
In summary, 2022 confirmed the growth of venture capital in Italy, with business angels playing an increasingly important role. The focus on ESG factors and impact investing is increasing, and the ICT sector remains at the centre of angel investors' interest.