Italy’s tech sector attracted US$768 million in funding in the first half of 2025, exceeding the country’s total for all of 2020, according to data from Italian VC firm Vento Ventures.

Significant rounds this year include US$104 million for PRIMA Industries, an industrial automation company, US$81 million for cybersecurity firm Exein, and US$34 million for Innovo Renewables, which focuses on energy.

Health tech startups raised US$126 million so far in 2025, while fintech companies drew US$91.6 million, and energy tech raised US$78.9 million.

Enterprise software startups have secured US$90.4 million, nearly double the amount raised in 2021.

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🔗 Source: Tech.eu

🧠 Food for thought

1️⃣ Italy’s venture capital transformation reflects decade-long structural shift

Italy’s current funding momentum represents a dramatic reversal from its historically weak venture capital ecosystem.

A 2013 Banca d’Italia study found that Italian venture capitalists invested only in small amounts with limited duration and played a minimal role in the innovation landscape1.

The research showed that Italian VCs had little impact on reducing credit costs for young firms and lacked clear “equity-then-credit” financing strategies that characterize mature venture ecosystems.

Today’s $768 million in six months signals Italy has overcome these structural weaknesses, with the country now breaking into Europe’s top markets for the first time, including ranking among the top 5 European edtech markets in 20242.

This transformation took over a decade to materialize, demonstrating that building a robust venture ecosystem requires sustained institutional development rather than quick fixes.

2️⃣ Healthcare surge aligns with Italy’s massive market expansion

The $126 million raised by Italian health tech startups reflects the country’s broader healthcare market transformation.

Italy’s digital health market already exceeded €2.3 billion in 2023, while the overall healthcare market is projected to grow from $181.86 billion in 2024 to $294.45 billion by 2033—a 5.20% annual growth rate34.

This growth is driven by Italy’s aging population and significant government investments in healthcare infrastructure and digital technologies, creating substantial opportunities for tech startups.

The timing of health tech funding coincides with Europe’s broader deep tech investment surge, where the sector attracted €15 billion in 2024 and now represents nearly one-third of all venture capital5.

Italian health tech companies are positioned to capture both domestic market expansion and broader European demand for digital healthcare solutions, explaining investor confidence in the sector’s growth trajectory.

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