Growth Capital, in collaboration with Italian Tech Alliance, presents the Venture Capital Report for Italy covering Q2-26 and the first half of 2026. The report outlines the main developments in the Italian venture capital ecosystem, with a focus on investment activity, sector trends, and financing dynamics, offering a view of the market at the mid-point of the year.
H1-26: A Maturing Ecosystem Despite Fewer Rounds
In the first half of 2026, investments in Italian startups and innovative companies reached €813 million across 145 rounds, confirming a solid start to the year. Setting mega rounds aside, the second quarter was the second-best ever recorded, with both the mean and median round size rising sharply, all signs of an ecosystem in a maturing phase.
Q2-26 saw the number of rounds increase against Q1 (76 vs 69), while the amount invested edged slightly lower (€402 million vs €411 million). The first half also included the launch of three new funds, which together raised €104 million, strengthening the capacity to invest in support of innovation.
Market Structure: Later Stages Drive Capital
The market remained polarized. Pre-Seed and Seed rounds continued to represent the heart of the ecosystem, accounting for 59% of rounds concluded (€37 million and €135 million raised respectively). In terms of capital invested, however, more mature rounds led the way. Series A (€276 million) and Series B+ (€274 million) together concentrated 68% of investment, while representing only 21% of transactions.
Sector Trends: Software and AI Lead the Market
Software, which includes the Artificial Intelligence and Machine Learning vertical, confirmed its position as the most active sector in H1-26, accounting for 25% of all rounds. Together with Life Sciences and Smart City, the three sectors represented over half of the operations concluded in the period.
In terms of capital raised, investment concentrated in Software (€214 million), Smart City (€165 million), and FinTech (€156 million), which together absorbed nearly two-thirds of total resources. DeepTech (€97 million) and Life Sciences (€57 million) also continued to attract significant volumes. AI and Machine Learning confirmed themselves as the leading area by number of rounds and entered the top three by capital raised, while FinTech led by amount invested, driven above all by the Rent2Cash round.
Among the top deals of Q2-26 were WeRoad (€50M Series C), Smartness (€47M Series B), Lexroom (€43M Series B), Niulinx (€38M Seed), and MDOTM (€24M Series C).
A Deep Dive on DeepTech
This edition includes a dedicated focus on DeepTech, an asset class where value is created by solving deep scientific and engineering challenges rather than applying proven technology to new markets. DeepTech has gained relevance in Italian VC, growing from €59 million in 2021 to €244 million in 2025, and rising from around 5% to over 11% of total amount invested. Across Europe, DeepTech represented 25% of all capital invested in H1-26, marking its highest share ever, driven by large rounds such as Stegra, Helsing, and Neura Robotics.
Stability and Concentration in the Broader European Context
At the European level, the first half of 2026 recorded 5,330 rounds for a total of €44 billion invested, with AI driving the market at 60% of capital deployed. Mega rounds, though representing just 1.3% of operations, concentrated 64% of capital raised, making H1-26 the strongest half for investment value since 2022. The United Kingdom confirmed itself as the leading European hub, raising €20 billion, equal to 46% of European investments, more than France, Germany, Sweden, and Switzerland combined.
Outlook
The Italian ecosystem continues to show solid fundamentals, particularly in Software, FinTech, and an increasingly relevant DeepTech sector. Structural challenges remain, however. The lower number of rounds reflects continued selectivity, likely linked to the suspension of tax incentives, while capital concentration in later stages highlights the funding gap for scaling companies. Exits improved in number (14 in H1-26, all M&As) but remained modest in value, confirming that liquidity is still the ecosystem's main pain point. Looking ahead, record mean and median round sizes, growing DeepTech weight, and new large European DeepTech funds coming online point to favorable conditions for a solid second half.
"A good first half for 2026, with European ecosystems boosted by mega rounds and AI now driving 60% of the amount invested across the continent," comments Fabio Mondini de Focatiis, Founding Partner of Growth Capital. "In Italy, fewer Pre-Seed and Seed rounds are offset by significantly larger average deal sizes and a strengthening late stage, all of which let us look ahead to the second half with optimism."
Link to the full report here
