Italy’s startup ecosystem is witnessing a notable increase in investment activity, with new data revealing a record-breaking beginning to 2025. This year, startups across Italy have raised €655 million, already exceeding the full-year total of €623 million recorded in 2020.
That’s a 5% rise, and we haven’t even reached Q4.
This growth is evident across various sectors. The highlights of 2025 so far include €88 million raised by manufacturing firm PRIMA Industries, €70 million secured by cybersecurity-focused Exein, and €29 million by energy company Innovo Renewables.
Among sectors, HealthTech is at the forefront with €107 million raised – on track to match or exceed last year’s €216 million total. FinTech is also showing strength, with €78.2 million raised and potentially set to surpass the €123 million raised in 2024.
Meanwhile, the energy sector remains vital to Italy’s tech narrative. With €67.3 million raised this year, it reflects both investor interest and Italy’s long-term dedication to the green transition, building on the €135 million raised by EnergyTech startups in 2023. Concurrently, the enterprise software segment is gaining traction – this year’s €77.4 million marks a doubling compared to €38.6 million in 2021, highlighting Italy’s rising status as a European tech hub.
Further fueling this momentum is the Italian Founders Fund (IFF), which recently secured an additional €35 million from CDP Venture Capital’s Digital Transition Fund, increasing its assets under management to €90 million. Launched in June 2024, IFF has become a pivotal part of Italy’s early-stage ecosystem, having invested in 14 Italian-founded startups across Italy, the UK, the US, and Singapore. Partner Lorenzo Franzi notes that the expanded capital will enable IFF to support Founders throughout the early-stage lifecycle and continue attracting top-tier international talent to Italy.
As funding rounds grow in size and frequency, global interest in Italy’s tech scene is rising. Founders, investors, and ecosystem builders are recognizing Italy not just as a hub for ideas but as a formidable player in Europe’s startup landscape.
Diyala D’Aveni, CEO of Vento, an early-stage VC, commented: “The remarkable data we’re seeing this year proves that Italy is a burgeoning hub of innovation. Italian tech isn’t just growing in isolation; it’s an integral part of a thriving and dynamic European tech ecosystem. […] We aim to inspire not only the next generation of Italian Founders but also the entire European tech community and beyond.”
Investor sentiment is evolving too. With innovation emerging across sectors – from green energy to AI-driven enterprise solutions – Italy is attracting increased attention from European and international VCs. This shift is driving up investment volumes and helping Italian startups connect with broader global networks.
This latest surge also highlights the importance of Italy’s growing support infrastructure for startups. From improved access to venture funding to a developing network of accelerators, co-working spaces, and talent networks, Italy’s tech scene is moving away from isolation. There’s a concerted effort toward greater connectivity – within the country and across Europe.
Many of these themes will be in the spotlight at Italian Tech Week, returning to Turin from 1–3 October 2025.
Last year’s event attracted over 15,000 attendees and featured speakers such as Sam Altman, Peter Thiel, and Daniel Ek. This year’s lineup includes figures like Jeff Bezos, Kevin Scott, and Luciana Lixandru.