Venture Capital in Italy: Analyzing Market Trends and Forecasting Future Growth

Venture capital (VC) is a key driver of innovation and economic growth, especially in dynamic startup ecosystems. In Italy, the VC landscape has undergone significant development, particularly in recent years, as the country experiences a growing shift from traditional industries to innovation-driven entrepreneurship. This thesis explores the evolution, current trends, and future outlook of venture capital in Italy. It investigates how venture capital supports startups, the role of public and private actors, sectoral investment trends, and investor behavior. The study also examines exit strategies, including acquisitions and secondary markets, and offers projections on the future growth of the VC market. The motivation behind this research stems from the increasing importance of VC in Italy’s transition towards a more innovation-oriented economy, and from the country's relatively low share of global VC investments, which indicates untapped potential. By analyzing the Italian VC market within a broader European and global context, this thesis provides valuable insights into the opportunities and challenges shaping the sector. A mixed-method approach was adopted, combining quantitative data analysis with qualitative case studies. Data sources include academic research, industry reports, government documents, and interviews with key stakeholders. The analysis highlights key investment sectors such as fintech, healthtech, and sustainability, and reveals the geographic concentration of VC activity in Northern Italy. The role of public institutions has been crucial in fostering market growth, though regional disparities and structural barriers remain. This study is relevant to policymakers, investors, and entrepreneurs seeking to understand and strengthen the Italian startup ecosystem. The findings underline the need for targeted policies, improved access to capital, and stronger integration with international VC networks to fully unlock Italy’s innovation potential.