ITALY Law and Practice Contributed by: Silvia Bordi, Emanuele Bosia, Federico Dettori and Rodrigo Boccioletti, Gianni & Origoni
1. Trends 1.1 VC Market
These milestones highlight Italy’s vibrant VC environment and the increasing global interest in its emerging sectors. 1.2 Key Trends Over the past 12 months, the Italian VC market has experienced several notable trends, shaped by the global investment climate. The most sig - nificant trend has been a tightening of financing conditions, driven by broader economic uncer - tainty and a globally subdued VC market. Inves - tors have become more cautious, focusing on companies with proven business models and stable growth trajectories. Early-stage funding rounds have become more selective, with higher due diligence standards and a stronger empha - sis on profitability over rapid growth. Transaction structures have also evolved in response to these market conditions. There has been an increased use of milestone-based financing, where investors commit capital in tranches tied to the achievement of specific operational or financial milestones. This struc - ture mitigates risk and ensures that capital is deployed efficiently as companies meet key growth targets. In terms of deal terms, there has been a clear shift towards more investor-friendly provisions. Valuations have seen a downward adjustment, and down rounds (where start-ups raise capi - tal at a lower valuation than in previous fund - ing rounds) have become more common. Addi - tionally, the use of liquidation preferences has increased, allowing investors to secure priority returns in case of an exit event, reflecting height - ened risk aversion. Anti-dilution clauses have also become more prevalent, ensuring inves - tors’ equity stakes are protected in future fund - ing rounds.
Over the past 12 months, several landmark VC transactions in Italy have shaped the country’s innovation landscape. In the tech space, Bend - ing Spoons, a leading app development com - pany, secured EUR143 million in 2024, reflect - ing strong investor confidence in Italy’s growing tech ecosystem. The medical and biotech sec - tors also saw significant funding, with Medical Microinstruments (MMI) raising EUR101 million in a Series B round to expand its robotic surgery technology. Similarly, Genespire, a biotechnolo - gy firm focused on gene therapy, raised EUR46.6 million, further highlighting interest in healthcare innovations. In fintech, Satispay, Italy’s prominent mobile pay - ment platform, secured EUR60 million to scale its operations across Europe, driven by the rising demand for digital financial solutions. Another significant funding round took place in the mobil - ity sector, where LimoLane, a B2B mobility scale- up, closed a EUR35 million round in July 2024. The funding, supported by Cherry Bay Capital Group, FG2 Capital and private investors, will help fuel LimoLane’s organic growth and a buy- and-build strategy in the industry. Among notable exits, D-Orbit, an aerospace company focused on space logistics, strength - ened its position through a significant funding round, garnering attention in the global space industry. Additionally, the partnership between OpenAI and Cassa Depositi e Prestiti (CDP), Italy’s state investment fund, is worth noting. This collaboration aims to integrate AI technolo - gies into Italian start-ups, signalling a shift in VC dynamics and national efforts to drive innova - tion.
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