Italy Startups

Report: Raising Capital in Italy

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Raising funds for a business is no easy feat, but it is a crucial step towards success. For entrepreneurs looking to start or expand their ventures, it is important to understand the various methods available to them to raise capital. One of the most common ways to raise funds for a business is through startup fundraising, which involves seeking investment from venture capitalists (VCs), private equity firms, and angel investors.

In recent years, Italy has seen sustained growth in the venture capital industry, with Italian VCs remaining relatively unscathed by the macroeconomic tensions of 2022. This has provided a favorable environment for startups seeking to raise funds for their businesses. In fact, according to a survey conducted by Startup Wise Guys, Italy has seen a steady increase in the number of successful fundraising rounds in the past year.

Startup Wise Guys has invested in more than 50 startups operating in Italy, of which approximately half of them have their parent company in Italy. To gain deeper insights into the Italian startup ecosystem, the organization conducted a comprehensive analysis through a survey of more than 200 startups. The survey included quantitative and qualitative questions regarding the pitch deck, Pre-Seed, and Seed stage to understand the bottlenecks and best practices of the fundraising process.

Main takeaways for the italian startup fundraising report: 
  • Stick to the essentials in your pitch deck: While there’s no secret sauce for the perfect pitch, the survey found that 15 pages should be enough to convey the necessary information. It’s important to focus on the team, problem, and business model, being a must-have.
  • Seed rounds can be tough to raise: According to the survey, Seed rounds take longer to raise in Italy, and entrepreneurs need to contact more investors than for Pre-Seed rounds.
  • Being a founder in Italy is challenging: On a scale of 1 to 10, founders rated their experience as a 6.5/10 on average, suggesting that it’s not an easy environment for startups.
  • Angels may be a better option for small rounds: From a bureaucratic point of view, it’s often easier to get funding from angels when raising smaller rounds.
  • Different VCs offer varying levels of support: The survey found that some VCs during the time of startup fundraising can provide much higher support value than others, which can be an important consideration when choosing which investors to approach.
  • Persistence and network are key attributes for success: According to the survey, the two best attributes for startup founders to have in order to succeed in Italy are persistence and network.

If you’re interested in learning more about the survey results and gaining an in-depth look into the Italian startup fundraising landscape, you can fill out a form to access the full report. While private equity fund raising was not specifically covered in the survey, the insights and recommendations provided in the report can still be useful for entrepreneurs looking to raise capital for their business. Please enjoy the read!