The incubator and accelerator market - Italy (2023)

1.2 The global market

in ****, Sillicon Valley represents the world's most important ecosystem for start-ups. The figure emerges from the report edited by Startup Genome concerning the global startup economy. The report ranks different ecosystems in light of their scores in different categories: Performance: composed of the measure of startups' economic impact and success rate. Funds: determined by the value of funds available to start-ups and the number of local investors. Connection: connection to the local fabric and presence abroad Market coverage: determined by the size of the local market and the number of "unicorns" (***) in the ecosystem. Knowledge: determined by the number of patents obtained and research conducted in the ecosystem Talent and experience: determined by the number of graduates in STEM subjects, the number of STEM school and university programs, and the number of startup "exits" in the past ** years. The following are the top ** ecosystems worldwide according to Startup Genome: RANKING ECOSYSTEM PERFORMANCE FUNDS CONNECTION MARKET COVERAGE KNOWLEDGE TALENT AND EXPERIENCE *° Silicon Valley ** ** ** ** * ** *° New York City ** ** ** ** * ** *° London * ** ** ** * ** *° Los Angeles ** ** * * * * *° Tel Aviv * * * ** * * *° Boston * * * * * ** *° Beijing ** ** * * ** ** *° Singapore * * * * * * *° Shanghai * * * * ** * **° Seattle * * * * * * (***)

The volume of investments directed at startups has been growing sharply in recent times. Between **** and ****, the total value of investments worldwide grew by **.*%, from $***.* million ...

1.3 The Italian market

between **** and ****, the total turnover generated by startup incubators in Italy is clearly growing. During the period under consideration, total turnover increased from *** million euros to more than *** million euros, marking a growth of ***.*%. After declining between **** and **** (***).

Total turnover of startup incubators Italy, ****-****, in millions of euros Socialinnovationmonitor

The growth of the incubator sector is accompanied by growth for innovative start-ups as well. Specifically, considering the total production value, between **** and **** this increased from *** million euros to *.** billion euros, representing a growth of **.* percent in * years.

Total production value of innovative startups Italy, ****-****, in billion euros Mimit

The total share capital of innovative start-ups also shows a very positive trend. Between **** and ****, the total registered capital of the businesses grew by ***.*%, from ***.* million euros to *.** billion euros. Total registered capital declared by innovative startups Italy, ****-****, in millions of euros Mimit The growth of the entire sector is then confirmed by the increase in equity investments in innovative startups. Between **** and ****, total investments by formal, informal, and international entities grew by ***.* percent, from *** million euros to more than *.** billion euros in just five years. Total equity investments raised by Italian innovative startups Italy, ****-****, in millions of ...

2.1 Demand in Italy

Between **** and ****, the total number of incubated startups in Italy grew steadily. While in **** there was a total of *,*** incubated businesses, in **** these are *,***, representing a growth of **.* percent in just five years. The growth appears to be constant during the entire period, including the ****/**** biennium, thus indicating the absence of significant consequences dictated by the outbreak of the pandemic in ****. Innovative start-ups incubated Italy, ****-****, in number Sim

Despite the backwardness of the Italian landscape compared to that of other European countries (***), the number of innovative start-ups has been growing steadily in recent years. Between **** and ****, the total number increased from *,*** to **,*** marking a growth of **.* percent. Thus, one can assume an increase in demand towards incubators as a result of the increase in activities.

Innovative start-ups Italy, ****-****, in thousands Mimit

Considering the economic sectors within which innovative start-ups in Italy operate, Ateco Code ** "Software production, IT consulting and related activities" collects the largest share of activity, accounting for **.* percent. This is followed by manufacturing, energy and mining with **.* percent and scientific research and development with **.* percent. Further behind in percentage terms are information and other computer services attiivities (***). All other sectors together gather **.* percent of total activities. Economic ...

2.2 Demand drivers

Start-ups that turn to an incubator can reap numerous benefits, including:

Access to funding: Incubators often help start-ups access funding, whether through angel investors, venture capitalists or government grants. Mentorship and access to networks: The presence of experienced mentors and access to a wide network of contacts, including investors, other entrepreneurs and potential customers, are crucial to a startup's success. These contacts can open doors to new business opportunities and fundingNetworking: being part of an incubator allows startups to build a network of valuable contacts, including potential customers, partners and investors. Access to tangible resources: incubators provide start-ups with physical space, infrastructure, various types of machinery and economic capital. This tangible help is essential for start-ups in their early stages, enabling them to save on significant operating costs. Support and advice: Incubators offer management advice and marketing strategies tailored to each business context. This support is critical in guiding start-ups through the complex challenges of startup and growth Skills development: Incubators often offer workshops, seminars and training to help entrepreneurs develop key skills in areas such as marketing, sales, financial management and more. Validation and credibility: Being associated with a well-known incubator can give the startup greater credibility in the eyes ...

2.3 Geographical distribution of demand

In order to visualize the geographical distribution of the demand for start-up incubators in Italy, a map was created with the concentration of innovative start-ups in each Italian macro-region compared to the national total.

The Northwest represents the main area of development of innovative start-ups in Italy, gathering almost */* of the total activity (***). Not far behind in percentage terms is the South with **.* percent of the start-ups present in Italy, while the Northeast of the country is home to **.* percent of the companies. Finally, the Islands gather just *.* percent of innovative start-ups.

3.1 The market structure

In order to analyze the structure of the startup incubator market in Italy, the number of incubators, the legal nature of incubators and the type of activity are considered.

Number of incubators

Between **** and ****, the total number of incubators in Italy appears to be growing. During the period, the total number of activities increased from *** to ***, marking a growth of **.* percent. The growth appears to be constant and again the outbreak of the pandemic in **** does not seem to have generated significant repercussions on the sector.

Start-up incubators Italy, ****-****, in number SIM

Legal nature In **** more than */* of the total number of incubators in Italy are private in nature. This is followed by mixed public-private activities with **.* percent of activities. Finally, incubators of a purely public nature (***) account for just **.* percent of the total number of activities in the territory. Legal nature of startup incubators Italy, ****, % Sim Type of activity Finally, considering the different types of incubator, in ****, **% of activities fall under the category of "Business Incubator" (***) account for ** percent of activities. Types of startup incubators Italy, ****, % Sim

3.2 The incubation process

The exit or transition phase of start-ups is a crucial step in both the incubation activity and the start-up itself. This phase can be divided into additional sub-phases:

Exit Options Counseling: Evaluating options: helping start-ups evaluate the various exit options available, such as selling the company, merging with another company, or initial public offering (***). Exit Preparation: advising on how to prepare the necessary documentation, assess the value of the company, and negotiate with potential buyers or investors. Legal and Financial Advice: Offer legal and financial assistance to guide start-ups through the complex exit process. Preparation for Independence: Post-incubation development plans: assist start-ups in developing strategic plans to operate independently after incubation, including financial and operational planning. Operational Autonomy: guiding start-ups toward operational autonomy, including managing teams, operations, and internal processes without direct support from the incubator. Long-term sustainability: helping start-ups develop strategies to ensure long-term sustainability and growth, even after leaving the incubator. Alumni Network: Network of former participants: create a network of incubator alumni, enabling start-ups to continue to benefit from networking opportunities, shared resources and mutual support. Alumni Events: arganize regular alumni events to foster continued collaboration, knowledge exchange and business opportunities. Reverse Mentorship: encourage successful start-ups to become ...

3.3 The geographical distribution of supply

In order to visualize the geographical distribution of start-up incubators in Italy, a map was created the percentage of activity concentrated in each Italian macro-region in ****.

As in the case of start-ups, for incubators the Northwest is the main center of development (***) collecting **.* percent of total activity. This is followed by the Center and the Northeast, with **.*% and **.*% of the total, respectively. Finally, the South collects a total of **.* percent of the activities: **.* percent in the South and *.* percent in the Islands. The distribution just presented shows a clear territorial dissimilarity in terms of the presence of incubators for start-ups. While the North of the country concentrates **.* percent of businesses, in the South these are just **.* percent of the total.

3.4 The main actors

The following is a list of leading startup accelerators and incubators in Italy:

Gellify Italia s.r.l: is a Purple innovation factory that combines future visions, software and human ingenuity, enabling organizations to thrive as modern digital enterprises. Through an integrated ecosystem, it connects people, processes and technologies, with a network of passionate innovators. It focuses on Cyber Security, Industrial IoT, Industry *.*, AI and Blockchain. with its approach to technological and digital innovation, has offices in several Italian cities. The company integrates technological expertise with the specific needs of the local market, offering services and support tailored to different Italian business and industrial realities.

Noi s.p.a: the company offers a startup-friendly environment, with pre-incubation and incubation programs, assistance in obtaining funding, and a mentoring and coaching network. The Techpark focuses on four technology sectors-Green, Food & Health, Digital, and Automotive | Automation-providing resources and support to help startups grow and succeed.

H-Farm s.p.a: founded in ****, H-FARM operates as an incubator, accelerator, and consultant to help startups, companies, and students develop in the digital age. Their work spans several areas, including education, with an emphasis on innovation and entrepreneurship. H-FARM collaborates with international companies and institutions to promote digital ...

4.1 Type of the offer

According to the European Commission's definition, a business incubator is "an organization that accelerates and systematizes the process of creating new businesses by providing them with a wide range of integrated support services that include the incubator's physical spaces, business development support services, and integration and networking opportunities." In other words, business incubation aims for a new venture to live in a shared space with many other startups, in which it will have access to various services, until one moves to a larger space for business development.(***) There are different types of incubators that have sprung up over the decades depending on the economic needs and types of businesses entering the market. Typically, * categories of incubators are identified:

Business Innovation Centers (***) University incubators or University Business Incubators (***) Independent private incubators or Independent Private Incubators (***) Private incubators dependent on large companies or Corporate Private Incubators (***)

The main public types include BICs and UBIs, whose incubation activities involve the provision of basic services to businesses (***)

The services offered by startup incubators in Italy are quite diverse, starting from business creation support to finding financing. Among the most popular functions are those related to the managerial sector, from the creation of the business plan ...

4.2 The gain of incubators

Although all incubators share the same goal of assisting start-ups in their early stages, they are divided into the following types:

Non-profit companies: The most reputable incubators are nonprofit organizations run by academic institutions, nonprofit organizations, government agencies, etc., to help young students or assist economic development in society.

For-profit development institutions: some companies also develop incubator services to make a profit by assisting start-ups or creating an investment opportunity for themselves.

Incubators operating for profit earn income through several sources:

Equity: For-profit incubators usually require equity in the early stage of start-ups for their services. In most cases, such incubators also provide funding or access to venture capital firms, accelerators, and so on in addition to standard services. Once the start-up gains enough market value and traction or when it goes public, incubators can opt for an exit and, thus, payment of their equity share. For example, if the start-up in which an incubator has invested goes public or declares an IPO, the incubator can sell its shares to the common public and get a massive return on its investment. In addition, sometimes a buyback occurs when the company repurchases its own shares. Another way to exit is to sell ...

5.1 The legislation

The following is the Italian regulations on start-ups and start-up incubators:

Start-up

Decree Law of October **, ****, no. ***: by which the legislature introduced into the legal system a regulatory framework to support the birth and growth of new innovative companies (***) with the explicit aim of fostering technological development, new entrepreneurship and employment, particularly of young people.

Decree Law No. */****: establishes a support discipline for "more mature" innovative SMEs, which are not registered in the special register of innovative start-ups.

Decree Law No. *** of ****: introduced a comprehensive framework of provisions, concerning the creation and development of innovative start-up companies.

Decree Law No. ** of May **, ****: introduced measures to strengthen and support the ecosystem of innovative start-ups.

Incubator

Article **, paragraph * of Decree Law ***/****: certifies the notion of start-up incubator.

Ministerial Decree Dec. **, ****: on the requirements for the identification of certified incubators of innovative start-ups, pursuant to Art. ** of Decree Law ***/****.

Circular No. **/E of the Internal Revenue Service dated June **, ****: clarification by the Internal Revenue Service about Article **, paragraph * of Decree Law ***/****.

6.1 Segmentation

• Gellify Italia s.r.l
• NOI s.p.a
• H-Farm s.p.a
• Lventure Group s.p.a
• Plug and Play Italy s.r.l
• Polihub s.c.a.r.l
• Sviluppo Como – Comonext s.p.a
• Digital Magics s.p.a
• 2i3T s.c.a.r.l
• Opificio 4.0 s.r.l