Growth Capital and Italian Tech Alliance: VC Report Q4 & FY-23
febrero 1, 2024

Key numbers FY-23:
– 325 investment rounds
– €1,176M amount invested
– 48 Series A, 16 Series B, 44 exits
– Sectors: Smart City with most rounds and DeepTech with the largest amount invested
– Verticals: FinTech with most rounds and Space Tech with the largest amount invested
– 2 mega rounds: Bending Spoons and D-Orbit (€100M)

Considerations on the Italian ecosystem in 2023:
– Q4-23 was the best quarter in the Italian VC in 2023, with €383M raised (+25% vs Q3-23) in 90 deals (+23% vs Q3-23). Q4-23 also marked the third consecutive quarter of growth
– 2023 represents a correction compared to 2022, a year characterized by particularly favorable market conditions. The Italian VC has returned to its slower and steadier trajectory towards maturity started in 2019, reflected in the improvement of key metrics such as the number of exits, the participation of international investors and the median round size

Outlook on Europe:

– Investments in 2024 will depend on several factors, including the evolution of the macroeconomic environment and geopolitical scenario. The numbers will be positively influenced by the need of VC funds to deploy at least a portion of their high level of Dry Powder
– IPOs will continue to be negatively impacted by inflation and persistently high interest rates, while the M&A evolution will be influenced by the opportunity to postpone liquidity events through internal bridge rounds or Venture Debt. An increase in buy & build operations is expected, with the aim of creating more cost-efficient European champions

Outlook on Italy:
– Any upside potential will be generated by the presence of Mega Rounds, the increase in the attractiveness to international investors, the disruptive potential of AI as a driver for the creation of new business models, and the mitigation of the adverse macroeconomic factors
– In light of the modest signs of recovery in H2-23, the stabilization of the disruptive factors that have characterized the market in the last 18 months, and the significant pipeline of Early Stage start-ups that have raised funds in recent months, it is expected that 2024 will exceed the amount invested in 2023

Today we also presented the VC index
– The index value in December 2023 indicates a situation of a stable outlook for the next semester. This value has increased compared to H1- 23 but is still lower than what was recorded a year ago
– Similar to H1-23, investors have a slightly more positive sentiment compared to founders. This difference is even more pronounced regarding forecasts for the next 6-9 months
– These results confirm the strong investor-friendliness that characterizes the current VC market

Read the report (english version)
Read the report (italian version)