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We often hear that the south of the country is growing. In the world of start-ups, there is a saying: ‘from zero to one’, but the real challenge here is another: to go ‘from one to one hundred’, so not only creating something from nothing, but making it grow, consolidating it, transforming it into a system that works and lasts.
Because that is where the difference between a brilliant idea, creative potential and an ecosystem that can generate future growth is measured. Over the last ten years, Italian venture capital has grown, of course, but with one obvious problem: almost all of it is concentrated in the north. The south, which also has valuable entrepreneurs and innovation centres that are every bit as good as the rest of the country, still receives only a fraction of the funding.
What’s missing?
It is the usual story of an Italy running at two speeds, without realising that we are all part of the same organism. And while we divide ourselves, the reality is that the whole country is lagging behind the rest of Europe. The Blue Banana theory (the highly urbanised European axis stretching from Liverpool to Milan and encompassing the most economically intense areas) may apply to many sectors, but the figures for the innovation ecosystem speak for themselves: comparing investment in Italian start-ups with that in France, Germany or the United Kingdom, it is clear that we are not even in the same category, in the same league.
I recently read about the wave of enthusiasm that started in Sicily last month and at the South Innovation Summit. It’s great, these are events that serve to raise awareness of innovation in southern Italy, even if, to achieve significant numbers, we need to add up almost ten years of investment in the south.
That’s why I wanted to dig deeper, cross-referencing accessible and verifiable data from multiple sources, including AI. The goal? To understand what the numbers really say about funding for start-ups in southern Italy and where there are discrepancies between the different sources.
VC investments in Italy over 10 years
Total VC investments in Italy 2015–2024 (baseline): ≈ €11–12 billion – period 2015–2024 – estimates based on official geographical shares (sources: Growth Capital + Italian Tech Alliance, P101 ‘State of Italian VC’, Intesa Innovation Centre)
| Region | Estimated percentage share of national investment 2015-24 | Estimated investments 2015-24 (millions of euros) | Estimated number of deals 2015-24 | Main sources |
| Lombardy | 50–55% | ≈ 5.5–6.6 billion euros | ~650–800 | VeM 2024: Lombardy ranks first in terms of number of targets; Dealroom: Milan accounts for ~50% of national tech value |
| Piedmont | 10–12% | ≈ 1.1–1.4 billion euros | ~120–180 | IC 2024 agreement: Piedmont overtakes Lazio; VeM: Lombardy+Piedmont >51% investments |
| Lazio | 10–12% | ≈ 1.1–1.4 billion euros | ~130–200 | Lazio Innova: strong regional fund activity; Intesa 2024: Lazio 11% |
| Emilia-Romagna | 6–8% | ≈ 660–900 million euros | ~90–140 | Open Innovation E-R Report; VeM distribution 2024 |
| Veneto | 4–6% | ≈ 440–700 million euros | ~60–100 | VeM 2024: average position; North-East Dealroom |
| Tuscany | 4–6% | ≈ 440–700 million euros | ~60–100 | VeM cluster Centre; 2019-2024 trend Dealroom |
| Campania | 2–4% | ≈ 220–480 million euros | ~30–60 | PR ERDF Campania: South ≈6% national VC; VeM: few deals per year |
| Apulia | 2–3% | ≈ 220–330 million euros | ~25–45 | Equity Puglia; Dealroom Southern Italy |
| Sicily | 2–3% | ≈ 220–330 million euros | ~20–40 | MIMIT + VeM 2024 (rare but consistent deals) |
| Sardinia | 0.5–1% | ≈ 55–110 million euros | ~8–15 | SFIRS VC; VeM (sporadic deals) |
| Calabria | 0.3–0.8% | ≈ 35–90 million euros | ~4–10 | MIMIT + VeM |
| Basilicata | 0.2–0.6% | ≈ 25–70 million euros | ~3–8 | MIMIT + analisi VeM |
| Molise | 0.1–0.3% | ≈ 10–35 million euros | ~1–3 | VeM (near absence) |
Methodological Note
Since there are no official data in Italy that continuously report, region by region, the total volumes of venture capital from 2015 to 2024, estimates have been reconstructed by applying the most reliable territorial quotas available for recent years (Dealroom, VeM, Intesa) to the ten-year period. The intervals are necessary because annual volumes fluctuate greatly due to mega-rounds: for this reason, we preferred to use ranges based on official values, consolidated geographical weights and historical trends between the north, centre and south. For the South, the structural limit indicated by the EY Venture Capital Barometer was also taken into account, which in 2023-2024 attributes approximately 6% of the national total to the South. Finally, the number of deals was estimated based on the 2024 distribution reported by VeM, the 2019-2023 average and a gradual reduction towards 2015, when the ecosystem was even smaller.
Lombardy remains the heart of Italian venture capital, followed by Piedmont, where Turin is consolidating its role in deep tech, and Lazio, supported by public funds and large corporations. Emilia-Romagna maintains a strong B2B and industrial focus, while Veneto is growing thanks to a widespread entrepreneurial ecosystem. In Tuscany, the Florence-Pisa axis is pushing AI and life sciences. In the south, Campania is the most advanced hub, but Puglia is catching up with growth in health and digital; Sicily is showing positive signs but remains fragmented, while Sardinia, Calabria, Basilicata and Molise have limited or almost no activity.
Annual trend in VC financing in southern Italy (consistent estimate for 2015–2024)
| Year | Total funding (millions of euros) | Number of transactions (deals) | Annual growth % | Covid / PNRR – Impact and active measures in the South | Sources |
| 2015 | 35 | 25 | — | — | VeM, Dealroom South |
| 2016 | 42 | 29 | +20% | — | VeM |
| 2017 | 50 | 34 | +19% | — | VeM |
| 2018 | 63 | 40 | +26% | — | VeM, CDP early-stage |
| 2019 | 78 | 45 | +24% | — | VeM, CDP |
| 2020 | 70 | 41 | –10% | COVID-19 — round contraction, deal delays, focus on bridge financing | VeM 2020 Special, Dealroom |
| 2021 | 95 | 52 | +36% | Post-COVID rebound. PNRR approved (06/2021) → still marginal impact on VC; activation of components M1C2 “Digitalisation” and M4C2 “R&I” | REGIS PNRR; MEF; VeM |
| 2022 | 110 | 60 | +15% | PNRR becomes operational on: • M4C2 R&I • Innovation ecosystems • TT • Public-private investments • First calls for tenders for businesses in southern Italy. Indirect effect on deal readiness | REGIS; MUR; CDP Venture; PR FESR South |
| 2023 | 128 | 72 | +16% | Full implementation of the PNRR. In the South, a binding quota of ≥40% is activated. Active: Southern Territorial Ecosystems, TT Centres, MIMIT investments. Strengthens the pipeline but does not proportionally increase VC rounds. | REGIS; CDP; MIMIT; VeM |
| 2024 | 150 | 83 | +17% | PNRR fully operational in measures for businesses/start-ups: co-investments, competence centres, thematic accelerators, digital transition. Effect on project maturity rather than on the amount of equity. | PNRR 2024, CDP, VeM Preliminary Balance Sheet |
Methodological Note
The analysis integrates data from the main national observatories (VeM Aifi–Liuc, Dealroom, CDP Venture Capital) with institutional databases on start-ups and incentives (Mimit, regional ERDF PR, Regis platform of the PNRR). The values consider the entire administrative area of Southern Italy: Campania, Apulia, Sicily, Calabria, Basilicata, Sardinia and Molise.
The PNRR allocates at least 40% of resources to the south, but this concerns public funding and not directly venture capital investments: the effect on VC is therefore indirect, linked to research, technology transfer, acceleration and public-private projects that strengthen the ecosystem and the quality of deals.
Conclusions
This intertwining of data tells a story that I know and we know well: that of a country trying to race ahead in the world of innovation, but often seeming to do so with the handbrake on. Italy has grown over the last ten years, attracting more investment and seeing more start-ups emerge, but we are still too far behind the major European ecosystems. It is as if we have the talent, creativity and desire, but not yet the staying power.
The north, on the other hand, holds its breath longer. Milan, Turin, Bologna: this is where capital flows, businesses invest and universities collaborate. It is a model and fertile ground built up over years of connections, experiments, mistakes and course corrections. In fact, half of Italian investment stays in Lombardy. The rest goes mainly to Piedmont, Lazio and other regions in the centre-north.
And then there is the south. Southern Italy is a place where there are ideas, talents and energy that I see every day, but which struggle to find the fuel to transform themselves into solid businesses. The figures speak for themselves: 6–8% of national investment. In ten years, the whole of the south has raised what Berlin, Paris or London raise in a single round. And that’s a shame, because the raw material, the people, is definitely there.
Another aspect that emerges is that of narratives: to make the numbers look higher, ten years of investments are added together. But if a territory is really growing, you don’t need to add so much: you can see it year after year. And this, unfortunately, is still not happening here.
The PNRR has helped. It has built infrastructure, financed laboratories, and encouraged many to improve their planning. You can see it, you can feel it. But it has not solved the central issue: private capital. The truth is that the PNRR makes the roots grow, not the fruit. The plant is there, but the fruit, i.e. the deals, are not growing at the same rate.
In the south, things are slowly changing: more deals, more incubators, more accelerators, more young people giving it a go. But the pace remains too slow to bridge the gap. It’s as if we started the race twenty metres behind and are running at a steady pace, while the others are sprinting ahead.
This is why Italy is a three-speed ecosystem. The north is racing ahead, the centre is keeping pace, and the south is trying to grow. But the gap remains, and it cannot be bridged with words or optimistic narratives.
Southern Italy does not need to go ‘from zero to one’: it has already done that. Now it needs to go ‘from one to one hundred’. We need to capitalise on talent, not just applaud it. We need real investors, not just calls for tenders. We need to accept risk, not avoid it. We need to build a capital market that simply does not yet exist.
Above all, we need to be honest. The south can truly become a hub of Mediterranean innovation, of course. But only if we stop telling ourselves stories of easy success and start building, piece by piece, the financial and cultural infrastructure that is lacking. On our own, without waiting for miracles, without deluding ourselves that a call for tenders or a magic wand from the public administration will solve everything, because we have already seen that story before, and it has already hurt us. The rest is work we must do together. Every day. Without shortcuts. (photo by Joachim Schnürle on Unsplash)
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