Lombardy: The Lombard Startup Ecosystem, Innovation Leadership in Italy

2025 for Italy's startup ecosystem shows mixed signals: an increase in deals but a contraction in the amount of capital available. In this context, Lombardy confirms itself as the main engine of national innovation, capturing a significant share of transactions and financial resources. According to the reference report, the region absorbs 47.3% of Italian deals, equating to 96 operations out of 204 rounds closed nationwide. Milan remains the hub of innovation thanks to the presence of venture capital funds, corporate investors, accelerators, universities, and financial infrastructure such as Borsa Italiana.

Lombardy, dominant hub by deal count

Lombardy emerges as the main hub not only for the quantity of deals but also for the quality and types of funded projects. The region absorbs nearly half of Italian deals: 96 rounds out of 204 closed in the country, confirming Milan as the epicenter of innovation. This dynamism is supported by the local ecosystem: venture capital funds, corporate venture, accelerators, universities, and a solid infrastructural network that facilitates identifying talents and competitive opportunities.

Key numbers for 2025

Overall, Italy invested about 1.1 billion euros in startups in 2025, down 22% from 1.4 billion in 2024. Despite capital moderation, the number of rounds rose 10.5% year over year, signaling greater activity and a more active market on the deal side, even if less able to sustain rounds of significant size, especially in the scale-up phase.

Polarization of investments and the weight of mega-deals

The market appears strongly polarized: four large deals – including AAVantgarde Bio, Nanophoria, Exein, and Hercle – concentrated almost 40% of the annual total raised. Resources are directed mainly toward mature or strategic sectors: fintech, biotech and medtech, HR tech, and deeptech. This concentration signals greater selectivity by investors and a preference for technologies with high scientific and industrial intensity. The effect is twofold: on one hand, successful global-champion types are created; on the other, there is a risk of reduced capital diffusion across a broader network of innovative initiatives.

Europe vs. Italy: the structural gap

The gap with the European ecosystem remains pronounced. In the first nine months of 2025, European startups raised about 33 billion euros (+7% vs the previous year), while Italy remains marginal on the continental stage. Among the main European hubs are the United Kingdom (14.4 billion), Germany (7.4 billion), France (6.1 billion), Sweden (2.5 billion), Finland (2.3 billion) and Spain (2 billion). There are examples of large rounds and fundamental funds like IQM or Tekever, but structural obstacles persist such as fragmented listing markets and recurring exit difficulties (M&A/IPO). Some observers call for a 'One Listing, One Capital Market' model to retain talent at home and simplify access to financial markets. Driving Europe as a hub are also dimensions like exits and IPOs, which continue to represent a structural bottleneck.

The scale challenge and the call to 'do more together'

From the SIOS25 Winter stage, a clear signal emerged: without structural strengthening of the ecosystem, the risk is a competitive standoff. More incisive industrial policies, greater public-private integration, and a shared strategy to support Italian startups beyond the initial phase are needed. Europe, despite its challenges, is building a more solid market; to not fall behind, Italy and Lombardy in particular are called to transform numerical leadership into the ability to generate global champions of innovation.

Debate: pros and cons of the current setup

This context offers concrete opportunities but also risks. On one hand, regional leadership can translate into targeted investments, talent attraction, and a pipeline of valuable companies that generate jobs and know-how. On the other hand, excessive capital concentration in a few areas or a few mega-deals risks compressing the diversity of the national entrepreneurial fabric, leaving niche startups behind that could contribute to more robust and widespread growth. It is essential to balance this concentration with policies that stimulate the diffusion of innovation across the country: support for public-private funds, targeted incentives for early rounds, streamlined decision-making processes, and clear exit paths that facilitate reinvestment in the next cycle. Some analysts highlight the need for tools to accelerate scaling, such as scale-up programs, vertical accelerators, and partnerships with large companies that provide access to international markets. Others advocate better integration between universities, research centers, and industry to turn discoveries into tangible commercial innovations. In short, the debate centers on how to balance capital concentration with broad diffusion of innovation, maintaining adequate exit levels to stimulate reinvestment.

Moving toward a stronger ecosystem: what to do

To convert numerical leadership into a real global growth engine requires rethinking public and private policies. A mix of investments in infrastructure, networks between companies and universities, and governance that rewards quality of opportunities rather than deal quantity is essential. It is crucial to reduce export barriers, incentivize R&D, and offer support tools for scale-ups, with collaboration programs leveraging public-private partnerships. The emergence of a robust funds network, together with greater interoperability among European markets, can facilitate more frequent exits and better reinvestment conditions. If Lombardy focuses its energy on a coordinated strategy with the rest of Italy and Europe, it can transform from a center of operations into a catalyst for real and lasting innovation.

A shared path for the Lombardy ecosystem

The path toward a more solid Lombardy startup ecosystem passes through investing in human capital, research infrastructure, and a network of collaborations linking universities, research centers, venture capital funds, companies, and public institutions. An effective model is one capable of turning numerical leadership into the ability to generate global champions of innovation, replicable in other regions and sectors. If stakeholders manage to work synergistically, Lombardy can continue to lead Italian innovation not only in deal count but also in the quality and global impact of the supported projects.

Brief conclusion: the future of Lombardy's startup ecosystem depends on balancing growth, efficient governance, and targeted investments that accompany companies along their entire journey. We need to systemize, invest in skills and infrastructure, and maintain an open public-private dialogue to transform a local ecosystem into a national model capable of competing internationally.

Fonte startup-news.it