(Finance) – “Italy is a country typically a follower of other European trends, and this also happens in the venture capital. Already in the fourth quarter of 2022 we had seen a lack of increase in deals, even if it should not be forgotten that 2021 had been a record year, and therefore the decline in the first quarter of 2023 should not come as a surprise“. He stated this Matteo Bonfanti, partner of Kairos Partners SGRduring the presentation of the Venture Capital Monitor – VeM research report, which indicated a 63% drop in the amount invested in Italian startups in the first three months of 2023.
“We see this contraction in the operating deal flow, and it is most felt by companies looking for large roundswhich are more influenced by the global macro context – he explained – The same phenomenon is happening in Italy as in Europe, where however there is no venture capital crisisbecause the data are decreasing in the short term but absolutely growing in the medium term”.
Bonfanti also recalled that in 2021 “we saw some very important evaluations for companies that had business models that were still very unsound”.
The expert also recalled that “at a European level there are over 50 billion euros of dry powderwhich means that there is safe capital to be invested, which also serves to bypass this difficult macro moment”. “In Italy most of the active funds have been launched in the last 2-3 years and therefore also here there is investment capacity“, he added.
(Photo: Photo by Sean Pollock on Unsplash)