With €203 million raised across 75 rounds, Q4-22 saw a slowdown in capital raised, though the number of deals was in line with the average of the previous four quarters (€463 million and 79 rounds). The decline in the amount invested in Q4 is primarily due to the absence of mega-rounds, which accounted for over 40% of the total in Q3-2022.
Looking at the full year, 2022 closed with over €1.8 billion invested, an increase of 48% compared to 2021, although this was heavily influenced by mega-rounds from Satispay (Series D, €320 million), Newcleo (Series A, €300 million), and Scalapay (Series B, €212 million). As Growth Capital forecasted at the start of the year, the Italian VC market was relatively unaffected by the macroeconomic and financial tensions of 2022, showing steady growth compared to 2021, unlike the contraction seen in Europe and other developed VC markets.
In terms of round segmentation by type in Italy, Q4-22 saw 38 Seed rounds, 18 Series A, and 3 Series B. Looking at the entire year, there were 57 Series A rounds, 19 Series B rounds, and 176 Seed rounds, which remain the most common round type (50% of all deals for the year). The increase in the number of Seed rounds (+42) and Series A rounds (+4) compared to 2021 raises hopes for a future increase in Late Stage rounds. The presence of Late Stage rounds has significantly increased from 2017 to 2022, though still remains lower than in more mature ecosystems like France, which had a more balanced distribution between Early Stage and Late Stage back in 2019.
“2022 was a year of significant maturation for Venture Capital in Italy. As we predicted a year ago, the Italian ecosystem saw a substantial increase in capital raised (around +50% compared to 2021), in contrast to the slowdown in Europe and the global contraction. The growing participation of international and institutional investors was also confirmed (a trend expected to continue in 2023). As Growth Capital, we anticipate that 2023 will be a year of further maturation and consolidation for the market, marked by an increase in the average size of rounds and the number of Late Stage deals. Overall investments will be influenced by high dry powder levels and the presence of mega-rounds,” commented Fabio Mondini de Focatiis, Founding Partner, Growth Capital.
