Table of contents
The Italian angel investing market is growing. According to the Italian business angel network (IBAN) association, there will be a definite upturn in 2024 compared to 2023, a fact that consolidates the structural role of the form of financing implemented by informal investors in the context of the innovation ecosystem. The increase in the number of deals and the amount invested highlight a renewed vitality of the sector. These are the main elements emerging from IBAN’s Survey 2025 analysing the Italian informal venture capital or angel investing market conducted under the scientific supervision of Vincenzo Capizzi of the University of Eastern Piedmont and SDA Bocconi.
In 2024, Italian business angels in fact almost doubled their commitment in autonomy to support Italian startups, investing a total of EUR 74.5 million, a figure up 89.5% compared to the last survey, in 106 deals (it was 75 in 2023). Also significant is the total amount invested independently or in syndication with VC funds, which exceeds €750 million, up almost 11% on the previous year, spread over 201 deals. The data also show that almost one out of every three investments made by business angels is in excess of EUR 500,000, and the number of large deals in excess of EUR 2 million doubled in 2024, accounting for 15% of total deals.
Paolo Anselmo, president of IBAN, (pictured) comments in a note: ‘2024 was a year of expansion for business angels, who almost doubled their commitment to supporting Italian start-ups with investments of almost EUR 75 million. It is also worth noting that the number of innovative realities supported by Italian business angels has grown by more than 40% since 2023, a figure that highlights the increasing involvement of business angels in new entrepreneurial projects. We also remain confident for 2025, which has already seen important signs such as the confirmation thanks to the Centemero DL of tax breaks and incentives for investments in start-ups and innovative SMEs”.
340 million over five years
The crises, uncertainties and international fluctuations of recent years have also had major consequences on the Italian market. In spite of this, however, the commitment of Italian business angels to supporting such a fundamental supply chain as innovation has never stopped, notwithstanding the pandemics or wars that have disrupted the global scenario. Gathering data from the last five years of business angels’ independent activity, a remarkable picture emerges of the activities conducted by investors without further support, but relying solely on their own economic possibilities and decision-making capacity. Between 2020 and 2024, in fact, the Italian start-up sector was able to benefit from around EUR 340 million to support its innovative initiatives and projects, a 122% growth compared to the period between 2015 and 2019.
Of this, EUR 74.5 million refers to 2024 alone. Looking at transactions carried out solely by business angels, the amount invested has almost doubled compared to the 39.3 million in 2023, and the number of target companies invested in has also grown from 75 in 2023 to 106. Thus, despite a slight slowdown observed in 2023, the angel investing sector in 2024 sees a strong recovery in the total amount invested and the number of deals. Thus, the decisive expansionary push in terms of amount invested and number of deals that led to the sector’s post-pandemic recovery from 2021 onwards, also thanks to the incentives of the Relaunch Decree, and the consolidation seen in 2022, continues.
73% of the deals monitored by the IBAN survey were syndicated, continuing the trend noted in previous years of business angels joining together in syndications to increase overall financial contribution, reduce individual transaction costs and reduce unit risk in the event of deal failure. Unlike in previous years, however, the average number of business angels per deal dropped to 5 from 11 in 2023, driven by the higher number of deals below EUR 50,000.
Investing in start-ups remains a proirity
In the midst of a phase of widespread uncertainty in many sectors such as the one currently underway, knowing that you can count on certain support is certainly an excellent sign. In this sense, business angels seem ready to continue their economic support for Italian start-ups as they have done in recent years. In fact, 79% of the investors involved in the survey stated that they would like to keep the share of their assets dedicated to investing in start-ups constant in the coming years.
Start-ups remain the preferred targets of investors for their deals in 2024 compared to seed investments, with the values continuing their distancing after the near parity recorded in 2022: in 2024, business angels favoured start-up stage companies (61%) over seed stage companies (39%), identical percentages to those recorded in 2023. The trend of business angels preferring investments in entrepreneurial projects that are at a higher stage of maturity in their journey thus continues, with the aim of decreasing the risk of failure of the individual investment and its portfolio, at the expense of financing projects in the very early stages of development.
Who are the business angels in Italy in 2024
The profile and characteristics of the business angel remain stable in 2024. The Italian business angel is between 45 and 65 years old (58%), with a high or very high level of education (almost all of the sample holds a Master’s degree and 32% a higher degree). Is affiliated with IBAN, one of the territorial BANs, or an investment club in northern Italy (85% of the sample). Has a professional background mainly in management roles (58%).
The average business angel has between €500,000 and €2 million in assets at his or her disposal, a figure that has remained stable over the last three years, and more than half of all business angels invest less than 10 per cent in angel investing transactions for a portfolio of around six investments. Among Italian business angels in 2024, there is also an important female component, which was confirmed last year at 16%, well into double figures.
ESG and impact investing
The IBAN 2024 Survey analyses the importance that ESG and impact investing factors have for Italian business angels, both when assessing a possible and then when deciding whether or not to support an innovative business project. The results of the latest survey also confirm the centrality of all these elements. More specifically. More than half of the survey sample, 57%, apply ESG and impact investing criteria when assessing investment opportunities.
Added to this figure is another number that again confirms that ESG issues are held in high regard by investors. For 44% of the survey sample, in fact, these are decisive components when choosing whether or not to make an investment.
Investment sectors
The sector of greatest interest for business angels is confirmed to be ICT, which has benefited most from investments over the past seven years. Investments in this sector are mainly concentrated on technologies related to AI and data platforms. Behind ICT, which attracts 38% of investments, comes the energy and embiente sector with 11%. This is a significant novelty, considering that in the last five years this sector was not present in the top three of business angels’ investment preferences. Closing out the top three positions are consumer goods with a 9% share.
The data of the IBAN 2024 Survey were collected through an online questionnaire on a sample of 246 subjects representative of the Italian innovation ecosystem. The survey is addressed to a population of subjects considered to be highly representative of the universe of business angels existing in Italy, with the aim of drawing a comprehensive picture of investment operations in new enterprises by informal investors: natural persons and legal persons set up for the purpose. The questionnaire was forwarded to a large number of operators in the startup ecosystem, specifically: individual members associated with IBAN; members belonging to Clubs and BANs associated with IBAN; stakeholders connected to the startup world such as individuals, investor clubs, bodies and institutions, business incubators and accelerators, family offices, etc. identified by IBAN, as subjects known to be active in the startup ecosystem; entrepreneurs who have conveyed their project in the reserved area of IBAN’s website during the period from 2014 to 2024; startups and innovative SMEs registered in the special section of the companies register.
ALL RIGHTS RESERVED ©