0100 Mediterranean Insights #6: Exploring Milan, Lombardy, Italy – A Thriving Investment Ecosystem for Startups and Investors

At our latest 0100 Conference Mediterranean, we gathered experts from Lombardy’s investment ecosystem, including Andrea Beretta of Cariplo Factory, Gessyca Golia from the Lombardy Region, and moderator Fiorenza Lipparini of Milano & Partners, to discuss the unique appeal of Milan for venture capital (VC) and private equity (PE) investments.

Fiorenza Lipparini, General Director at Milano&Partners provided key insights into Milan’s economic growth. Although Italy’s VC and PE markets are still developing compared to other European regions, Lombardy is leading the charge, attracting around half of the country’s total capital investment. Lipparini noted that Milan’s 2022 record of €1.5 billion in VC investments makes it one of Europe’s fastest-growing cities for venture capital. This progress is backed by Milan's powerful research ecosystem, comprising eight universities focused on high-growth sectors and a robust corporate presence, with around 92% of multinational corporations in Italy based in the city. Additionally, Milan’s emphasis on open innovation and the rise in corporate venture capital and private equity have significantly boosted local startup activity.

Adding to these incentives, Lombardy offers substantial government support, including a 30% tax relief and nearly €1 billion in government co-investment funds, fast-track visas, and a pathway for IPOs through Milan’s stock exchange. Gessyca Golia underscored Lombardy’s industrialized economy, with over 900,000 businesses and more than 4 million employees. Initiatives like FutureMatch 2024, hosted at Palazzo Lombardia, were highlighted as instrumental in supporting promising startups and connecting them with venture capital. This annual event showcases innovative startups in sectors such as ICT, medtech, cleantech, and green chemistry, which Lombardy is particularly keen to grow, with support from programs like Startup Lombardia and collaborations with institutions like the ESA Business Incubation Center.

A key component of Milan’s startup ecosystem is the Skydeck Europe Milan Accelerator, a partnership between Cariplo Factory, UC Berkeley’s Skydeck, and the Australian real estate developer Lendlease. Andrea Beretta described Skydeck as a launchpad for early-stage startups, providing mentorship, funding, and demo days for international entrepreneurs. The program has already backed 45 startups, investing €145,000 per company, with a growing list of participants from Europe, the U.S., and even Mexico. This platform supports startups through intensive sessions with advisors in the U.S. and culminates in a demo day in Milan, creating valuable international connections and visibility.

Sustainability is central to Lombardy’s growth strategy, with initiatives like a €200 million fund launched by Milan’s publicly-owned utility company, A2A, to support green technology acquisitions. Lipparini emphasized that Milan and Lombardy align their investments with European taxonomy and sustainability standards, making them attractive to green and socially-minded investors. Despite the region’s fast-paced digital transformation, the panelists observed that Milan’s digitized infrastructure mitigates potential challenges for tech startups entering the market.

This coordinated effort between public institutions and private entities showcases Lombardy as a flourishing and forward-thinking investment ecosystem. Panelists welcomed international investors to consider Milan as a gateway to the broader European market, offering local support for navigating Lombardy’s promising investment landscape. With continued government backing, a booming startup scene, and a commitment to sustainability, Lombardy is poised to become a key European hub for innovation and investment.