Italy’s Alternative Finance Market Strengthens for SMEs Amid Recovery

The alternative finance market continues to represent an increasingly strategic asset for Italian SMEs. After two challenging years, marked by international tensions and rising capital costs, the sector is once again showing signs of recovery and positive sentiment heading into 2026.

That is what emerges from the eighth edition of the research paper “Alternative Finance for SMEs in Italy,” produced by the Polytechnic University of Milan with the support of Innexta, Unioncamere, and the Chamber of Commerce of Milan, Monza Brianza, and Lodi. The paper was presented on November 20th during Finance Day Italy 2025, hosted at Palazzo Giureconsulti.

The research, updated as of June 30th, 2025, analyzes six key areas of alternative finance: private debt and minibonds, crowdfunding, invoice trading and fintech lending, tokenization and crypto-assets, private equity and venture capital, and EGM listings.

Despite a still challenging environment, the alternative finance market remains vibrant and capable of attracting capital, with further growth expected in the coming months.

Private debt and minibonds: the sector is back on track

Among the most dynamic segments of alternative finance is private debt, which is recovering ground after the slowdown in 2024, marking its best performance since 2022.

On the minibond front, after a decline in 2024 (592 million raised against 710 in 2023), the first half of 2025 shows signs of a reversal: 54 issues for 333 million euros , a sharp increase compared to the 202 million of the first six months of 2024.

Direct lending also saw positive growth

Professional Venture Capital Investors: VCs Stable, Growth Capital Declines, BAs Increase
The venture capital market is maintaining a stable pace: €454 million invested in 236 deals in the first half of 2025 (source: AIFI).

Growth capital performed less well, with €270 million invested across 30 deals, down from 2024, when 56 deals were financed with €695 million in investment, already down from 2023.

However, there is a return to growth in business angel activity, with a decidedly positive 2024: according to statistics collected by IBAN, 74.5 million euros were invested compared to 39.3 million euros in 2023.

Fintech and invoice trading: volumes consolidating

Fintech platforms dedicated to credit transfer and alternative finance models (trade finance, revenue-based financing) continue to grow, proving to be crucial for meeting SMEs’ liquidity needs in the early months of 2025.

Crowdfunding: Declining Funding, Impacted by ECSP Regulatory Transition

The picture is less positive for crowdfunding,an alternative finance sector which is impacted by the complex regulatory transition to ECSP and unmet expectations for some returns. Overall, over the last 12 months, fundraising has fallen by 14% (€261 million vs. €302 million) .

The first half of 2025 recorded approximately 120 million raised, down from 140 million in 2024, with an increasing concentration on real estate.

EGM: Fewer IPOs and initial declines in the number of listed companies

A slowdown is observed in the listings market: as of June 30th, 2025, the companies on Euronext Growth Milan dropped to 205, and new entries in the first half of the year were only 6 IPOs for 21 million in funding , compared to 72 million in the same period in 2024.

What the protagonists say about the alternative finance market

“The alternative finance market is evolving rapidly: some models are showing critical issues while others are accelerating ” said Professor Giancarlo Giudici of the Polytechnic University of Milan. “Now the challenge is to intercept the liquidity parked in bank accounts ”

For Danilo Maiocchi, General Manager of Innexta, the main theme remains financial literacy: “The opportunities offered byalternative finance are still little known to SMEs. Strengthening entrepreneurial education is now essential.”

Finance Day Italy: A multi-voiced discussion on the future of the market

The event, opened by Andrea Prete (Unioncamere), Marco Aldeghi (Milan Chamber of Commerce, ABI Lombardia), and Paolo Ferrè (Innexta), brought together institutional representatives and financial players.

Speakers included Federico Freni (MEF), Giovanni Bossi (Cherry Bank), Lucia Di Bisceglie (Bari Chamber of Commerce), Ivan Fogliata (Südtirol Bank), and Antonio Santocono (Padua Chamber of Commerce, Infocamere).

The morning concluded with roundtable discussions involving, among others, Hon. Giulio Centemero (Parliamentary Assembly for the Mediterranean and Gulf), Michelangelo Bottesini (Italia Fintech), Marzio Pividori (Banca Aidexa), Giovanni Sanfelice di Monteforte (Tancredi Group), and Marco Santarelli (Santarelli Consulting).

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(Featured image by Vitaly Gariev via Unsplash)

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