According to the latest report published by the Ministry of Economic Development (MISE), as of January 1, 2022, there were approximately 14,000 active innovative startups in Italy. This growth has been consistent, especially when compared to the previous year when there were about 11,000 innovative startups.
This increase can be attributed to various measures and incentives introduced to support the technological and entrepreneurial landscape in the country. As previously explained in one of our earlier analyses, the establishment of a startup is encouraged through tax benefits, deductions, and dedicated financing options.
Furthermore, Cassa depositi e prestiti has initiated a venture capital fund specialized in investing in innovative startups and small and medium-sized innovative enterprises, providing investments of up to 1 million euros in the capital of these types of companies. In this article, we've included some figures related to the venture capital market in Italy, which continues to grow at a rapid pace.
As mentioned earlier, investing in startups is encouraged through various financial and tax incentives, which partly offset the inherent risks associated with such investments.
As highlighted in the MISE report, around 50% of the startups surveyed in the latest monitoring are operating at a loss. However, what might be of interest to investors looking to diversify their portfolios are the Return on Investment (ROI) and Return on Equity (ROE) indicators.
In fact, for profitable startups, these profitability indicators tend to be better compared to non-startup businesses, demonstrating the potentially high economic returns from this type of investment.
The startup landscape is also populated by companies operating in high-growth sectors such as the digital economy and renewable energy. Both sectors are subject to substantial state incentives, especially within the framework of the National Recovery and Resilience Plan (PNRR).
Particularly, the renewable energy sector, where numerous startups are now operating, is undergoing nearly exponential growth, and most investors are positioning their investments in this market segment.
Investing in startups in high-growth sectors not only offers above-average returns but also the added tax benefit of a 30% deduction for individuals and legal entities based on their investment. Additionally, there is the exemption of the 26% substitute tax on capital gains made by individuals resulting from the sale of shares in the capital of startups and innovative SMEs.
This exemption applies even if the capital gain comes from the sale of shares in non-startup and non-innovative SMEs, as long as the capital gain is reinvested in startups and innovative SMEs within one year.
In summary, investing in an innovative startup, preceded by a thorough scouting process, provides an opportunity to diversify your investment portfolio and achieve a high return on investment.
Our firm is well-established in the world of innovative businesses. We offer consultancy services for the establishment of startups and innovative SMEs, guiding them in the subsequent search for sources of financing to develop their business model.
Furthermore, our firm is a partner of an accredited business incubator and accelerator at the Ministry of Economic Development, providing access to a broad network that includes club deals, family offices, banks, and investment companies.
With our extensive experience in the sector, we can identify the most promising entrepreneurial projects and conduct the necessary due diligence to evaluate the strength and growth prospects of startups.