Venture Capital Report - Italy Q1-23 (Growth Capital)

Summary

• In Q1-23, Italian VC transactions totaled €201M raised across 84 investment rounds.p.6
• European VC investment reached €11.0B in Q1-23 across 1,571 rounds, down 14% and 39% respectively from Q4-22.p.9
• Seed rounds dominated Italian deal volume in Q1-23, representing 50 rounds or 60% of total deals.p.13
• FinTech attracted the highest funding among Italian sectors in Q1-23 with €56M, driven by a single €40M deal.p.19
• HealthTech led all verticals in Italy by total deal count with 5 rounds announced in Q1-23.p.20
• Italian startups experienced 11 exits in Q1-23, primarily composed of M&A transactions and 1 IPO.p.23

Key insights

1. European VC deal count dropped 44% and total capital invested decreased 31% in Q1-23 compared to their 5-year averages.p.9
2. For the first time since Q4-21, no Series C or later venture rounds were announced in Italy during Q1-23.p.13
3. Seed funding generated 45% of total Italian VC raised in Q1-23, largely due to the Alps Blockchain round.p.14
4. Smart City was the most active sector by deal volume in Q1-23 with 18 rounds announced.p.18
5. Blockchain ranked as the top vertical by capital invested in Q1-23, securing €40M.p.20
6. Four of the top five Italian VC rounds in Q1-23 were funded exclusively by Italian investors.p.22
7. Italian annual inflation reached 7.7% in 2022, pressuring startups with cash reserves to optimize cash flow planning.p.25
8. Growth Capital and Italian Tech Alliance launched an Italian SAFE template on March 21, 2023, based on Y Combinator's model.p.29