Is Italy a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Italy has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Italy gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Italy

Funding is one of the most critical ingredients in building a successful startup – and Italy offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Italy's early-stage funding landscape is evolving, with increased activity in recent years, though it still trails behind major European counterparts in per capita investment. Notable Italian VC firms active in the early stages include P101, United Ventures, and Primo Ventures. Angel networks like Italian Angels for Growth (IAG) and Club degli Investitori also play a crucial role in supporting local founders. The government actively supports startups through initiatives like the Fondo Nazionale Innovazione (managed by CDP Venture Capital SGR) and grants such as Smart&Start Italia. Despite progress, challenges persist, including a significant drop in seed and early-stage investment amounts in 2024 compared to previous years, and a lower number of deals overall, signaling a potentially weaker early-stage pipeline. The market has become more selective, with investors focusing on proven business models. Regional disparities and attracting follow-on capital after the initial seed stage also remain hurdles.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Italy has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Italy's startup and innovation culture is developing, with a growing ecosystem particularly strong in cities like Milan. The country has a history of entrepreneurship, which is contributing to the startup scene. Coworking spaces are increasing, with over 1000 recorded in 2023, concentrated mainly in the North, especially Milan, and are used by freelancers, companies, and startups. Italy also hosts numerous tech events and conferences throughout the year. While entrepreneurial activity exists, it has been noted as structurally low compared to other industrialized nations, though there are signs of growth and government initiatives to improve the environment. Support for early-stage founders is available through a growing number of incubators and accelerators, some offering funding and mentorship, and new funds specifically targeting pre-seed and seed stages have emerged. However, challenges like bureaucracy and access to funding, particularly in early stages, persist.

For many entrepreneurs, the energy and resources available in Italy can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Italy, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Italy is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Italy has a growing talent pool for startups, supported by a strong network of universities like Politecnico di Milano and Bocconi University in Milan, and La Sapienza and Luiss in Rome. These institutions contribute to a skilled workforce, particularly in technology, engineering, and business fields. While there's a recognized need to further enhance digital and specific industry skills, government initiatives and collaborations between academia and industry are working to address this. Local talent supports entrepreneurial growth through a strong entrepreneurial attitude and increasing engagement with incubators and accelerators across cities like Milan, Rome, and Turin.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Italy can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Italy boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Italy offers a growing ecosystem for startups, supported by various infrastructure and government initiatives. Cities like Milan, Rome, and Turin host numerous coworking spaces, incubators, and accelerators such as PoliHub, LVenture Group, and Digital Magics, providing mentorship, resources, and networking opportunities. Government support plays a crucial role. The "Italian Startup Act" provides tax breaks and simplified regulations. Smart&Start Italia offers zero-interest loans and grants for innovative high-tech projects. CDP Venture Capital, a public investment arm, supports startups across different stages through various funds. Regional initiatives also provide grants, tax incentives, and consultancy services. These resources collectively help startups access funding, expertise, and a supportive environment to thrive.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Italy. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Italy Be Considered the Best Place to Launch a Startup?

There’s no doubt that Italy provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Italy face several hurdles. Competition is significant, with established local and other EU companies present across various sectors. The cost of living, particularly in major cities like Milan and Rome, can be high, impacting operational costs and talent attraction. Regulatory issues and bureaucracy are notable challenges, with a complex legal framework and varying regional laws that can complicate registration and compliance. Navigating these requires understanding local nuances and potentially seeking expert guidance.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Italy or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Italy offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash