July 2024 confirmed itself as a significant month for the Italian startup ecosystem, with a total of EUR 129 million invested in 18 funding rounds. This represents a significant increase compared to the 92.55 million raised in the same month of 2023, spread across 21 deals. Despite the monthly growth, total investments in the first seven months of 2024 stood at 505.77 million euros, a figure lower than the 607.61 million recorded in the same period of the previous year.
Positive signals from equity and debt
Among the most notable transactions in July were the 35 million raised by Limolane, followed by Hui's 25 million and Exein's 15 million. These figures also include equity crowdfunding campaigns, which contributed a total of EUR 2.6 million.
Extending the horizon beyond Europe, start-ups raised EUR 47.3 billion in 2,971 equity and debt deals in the first half of 2024. According to the H1 2024 report published by Sifted, the 'climate tech' sector received the most investments, with EUR 21.3bn raised between January and June.
Dilutive financings - i.e. those involving a dilution of the ownership share of existing shareholders - decreased slightly compared to the second half of 2023, but are still higher than in the same period last year. EUR 18.7 billion of this financing was raised in the form of debt. At the current pace, this will exceed the 2022 debt financing record of EUR 28.1 billion in Europe.
Venture Capital is in good health
Positive signals continue to come from Venture Capital. In the second quarter of 2024, EUR 228 million was invested in 69 funding rounds in Italy, of which 10 were Series A, 2 Series B and 1 Series C. The sector with the highest number of rounds was software, while the smart city segment had the highest number of rounds. In addition, 8 exits occurred during the quarter. These data were collected by the Observatory on Venture Capital in Italy, realised by Growth Capital in collaboration with Italian Tech Alliance. For those wishing to learn more, you can download the full report provided by the observatory.
New measures for the start-up sector
At the same time, on 26 July the draft law (ddl) Concorrenza was approved, which introduces a series of measures in favour of start-ups. Among the main changes are the new criteria for identifying and rewarding companies: start-ups will be able to benefit within two years of being registered in the special register, provided they have a minimum share capital of 20,000 euro and at least one employee. Special attention is paid to innovative start-ups operating in strategic sectors, which will be able to remain on the special register for up to 84 months. In addition, the conditions for recognising certified incubators have been broadened, extending to them the benefits of 30% tax deductions from IRES, hitherto reserved for other economic entities that invest in start-ups.
In conclusion, data from the last month show a growing dynamism in the Italian start-up sector, both in terms of investments raised and new regulations aimed at fostering the ecosystem. These developments, together with European trends, signal a growing interest in innovation and technology. With the approval of the ddl Concorrenza and the measures in favour of start-ups, the future of innovation in Italy looks promising.