Investments in Startups in Italy Were over €1 Billion in 2023, but 51% Less than in 2022

The Italian innovation ecosystem continues to be lively, there is no shortage of promising projects and ideas, but this year the extraordinary economic performances of 2022, the year of records with over €2 billion of investments, have not been repeated. In 2023, the overall volume of rounds amounted to €1.13 billion i.e. 51.5% less than in the previous twelve months.

However, in light of the general decline in the collection of resources at a global level, the ecosystem in Italy is quite solid, beyond the threshold of 1 billion in annual investments.

The Italian data are in line with international evidence, heavily influenced by geopolitical instability, by the economic and financial trend characterized by both increases in interest rates and a reduction in spending with the increase in inflation. If you look at Europe, for example, the value of the European Venture Capital market decreased by 49% in the first nine months of 2023.

Read more about the report on investments in startups and find the latest financial news of the day with the Born2Invest mobile app.

All the numbers for 2023

Added to the negative sign of investments raised in 2023 (-51.5%) is the drop in the number of deals: 164 with a reduction of 18.8%. As can be seen, it is not so much the number of rounds that decreases but the amount of investments per round. While 62 million have been raised with the equity crowdfunding tool in 141 operations (Crowdinvesting Observatory data as of November 2023).

Where do you invest?

Analyzing this year’s 164 rounds in more depth, we observe that 8.5% concerned the medtech sector. Next in the ranking are loans in cleantech, biotech and technologies applied to the work/HR field (6.09%). Followed by investments in food (4.2%), in software development, editing and aerospace (3.6%).

While we find equal merit in fundraising in the mobility and cybersecurity sector (3.04%). Continuing we encounter deals in artificial intelligence, delivery and agritech (2.4%) and in ecommerce, insurtech and apps (1.8%). Deeptech and automotive close the ranking (1.2%).

Regarding round cuts, A rounds dominate (40.08%) followed by seed (16.6%), Series C funding (12.8%) and finally preseed (12%). This last data opens up new scenarios and also sometimes conflicting opinions on the harvest which is still in its infancy.

The ranking of the regions sees Lombardy in first place in terms of number of operations (39.3%), followed by Piedmont (12%), Tuscany (7.9%) and Emilia Romagna (7.3%). Campania is stable compared to last year, with five of its startups receiving investments like in Veneto (3%). Four deals instead feature startups from Trentino and Friuli (2.4%), followed by Sicily (1.8%) and Liguria (1.2%). A single operation for Umbria, Molise and Sardinia (0.6%).

Two super rounds of €100 million investments

Bending Spoons, the company that develops and markets smartphone apps, has completed the most important investment raising with two rounds of €170 million. One hundred million instead to D-Orbit, pioneer in space logistics. A good achievement also for Avantgarde bio which raised €61 million for the biotech, focusing on the development of gene therapies for hereditary retinal diseases. This is followed by the €55 million (in two rounds) of Energy Dome, focused on reducing energy consumption. And finally the €40 million of Alps Blockchain, specialized in research and development in the mining sector.

A 2023 also characterized by exits. Like that of Filo, the Roman startup specializing in IoT products, purchased by Traveler Innovations. And again Kippy, still focused on the IoT sector, to monitor the health of pets, bought by the Swiss Datamars. While Iren acquired the majority of Remat, active in the circular economy sector for €3.5 million. Finally, exit also for Baasbox, a Roman software house, incorporated by Mexemedia.

There are two startups that make purchases instead. Among the most interesting operations of 2023 we point out Glickon, active in the human resources monitoring sector thanks to artificial intelligence technologies and big data analysis, has acquired the startup Teamsight. And still noteworthy is the acquisition of Content, the Italian startup that develops AI solutions for content generation, which took over 100% of Traduzione.it.

Rounds and exits are decreasing, cleantech is growing

In line with Italian data, Europe also recorded a significant decline: according to data updated to September 30 by State of European Tech, startups from the Old Continent raised $45 billion in 2023 (approximately €41 billion), approximately half compared to the $85 billion of the previous year. Exits also fell, reaching a value of $9.1 billion, marking -72.8% less than last year: it is the worst figure since 2013 and also unicorns: in 2023 only 7 startups reached unicorn status, up from 48 last year.

There is also no shortage of positive data, such as the increase in investments in a strategic sector such as cleantech: 27% of all the capital invested by venture capital in Europe is concentrated in the search for alternative solutions to fossil fuels and in the search for technologies capable to reduce energy waste and harmful emissions. And above all, a historical fact to underline: Europe surpasses the United States in the formation of new tech startups, with an estimate of 14 thousand and 13 thousand new founders.

__

(Featured image by nattanan23 via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in StartupItalia, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us