Italy's Startup-Innovation Ecosystem: 2025 Analysis and Growth Trajectories
- Marc Griffith
- Dec 17, 2025
- 2 min read
In 2025 Italy's startup-innovation ecosystem shows signs of both dynamism and tension at once: activity and the number of rounds are rising, but available liquidity remains lower than the previous year. According to the That’s Round 2025 report, 204 rounds were closed for a fundraising of about 1.1 billion euros, with growing activity but a contraction in total capital compared to 2024. Large deals account for almost 40% of the total raise, while the middle tier, where startups should make the leap to scale, remains the most fragile. These elements paint a living but still uncertain ecosystem, capable of generating interesting projects without necessarily translating into uniform growth.
The Italian snapshot also shows a focus on investments in sectors structurally complex and long-term: biotech, medtech, deeptech and fintech. It is a sign of maturity and a willingness to innovate geared toward building high-tech value chains. However, without an adequate exit dynamic, the system risks remaining incomplete: startups are born and grow, but struggle to close the loop and become global champions. A reality that reflects a European constraint: very strong at the birth of new companies, less effective at turning them into internationally scalable businesses. There is no shortage of talent or ideas, but a shared strategy on capital, markets and courage is needed.
The critical reading of the report prompts a key question: how to transform a promise into an industrial lever capable of substantiating the real economy? The central message is clear: without an integrated system, where public, private, universities and investors operate in alignment, potential remains fragmented. A shared industrial vision is needed, bolder and more consistent public policies, as well as a collective commitment to bring Italy up to the level of its ambitions.
Source: That’s Round 2025, the paper available at the bottom of the page emphasizes how the evolution of the ecosystem passes through concrete systemic measures and tools.
