Home to the globally pursued ‘dolce vita’, rich culinary heritage and culture in every corner, Italy is a beautiful country that attracts global attention.
Not only does it welcome visitors who flock to enjoy the weather, food and historical gems, but, it is also welcoming growth in its startup ecosystem. Italy is the 4th largest economy in Europe and it’s a country that has brought innovation to European soils for centuries.
In the past 5 years, the Italian startup ecosystem has been on an exciting upward growth trajectory. Investments in Italian startups reached over €2 billion in 2022, with a 68% increase from the previous year. In 2022, the country also saw the transformation of two startups into unicorns: Satispay and Scalapay. Not only does Italy have unicorns staying close to home, but it’s seen companies take flight, spreading their wings on the global stage. One example is Depop, which was born in Italy, before moving to London – and recently got acquired by Etsy.
In our recent articles, we have highlighted the top 10 startups to watch in Rome and the top 10 startups to watch in Milan, and we believe that these are only a few examples of the many innovative and rapidly growing startups in Italy. We also recently sat down with Marco Tricarico from Switcho to learn more about the evolution of the Italian startup ecosystem.
Italian innovation is at an exciting point right now and lots of big names are emerging from this southern European nation, so, we think it’s definitely worth keeping one eye on Italy in 2023.
We decided to scout the top startups that you should be watching. Find here, 10 super-promising Italian startups, all founded since 2020, that we believe have an exciting future ahead of them.
Babaco Market: Green-food-tech startup founded in 2020, Babaco Market is a subscription with which you receive out-of-the-ordinary fruit and vegetables at home. Products that do not exceed at beauty contests tend to be thrown out and tossed aside – which is a tremendous waste. Babaco is taking on this waste and instead, offers these less-pretty but still worthy vegetables and fruits to be conveniently delivered- bringing food goodness for planet good. The team carefully selects Italian producers to partner with, favouring those with a passion for protecting sustainable cultivation. Babaco Market has raised a total of €8.1 million, including its most recent funding round in November 2022.
Serenis Health: This Milan-based mental-health startup was founded in 2021 to offer psychotherapy, coaching and psychological support via video call. They believe that the internet can be a valuable tool in democratising access to mental health support. At the same time, they want to ensure that it’s quality care that is being provided online. So, the startup harnesses the power of the two together using data and digital tools to improve the effectiveness of therapies. Unlike other platforms, they are also a medical centre: it means that they are accountable for the quality of the care and that they must respect the same standards of any clinic. Every patient can count on them from the beginning to the end of the journey, and the same goes for every therapist. The company has successfully raised €6.5 million in funding, with its latest round taking place in October 2022.
hlpy: hlpy is a pioneering digital roadside assistance company based in Milan. As a B2B2C startup, it is at the forefront of innovation in the industry, offering a cost-effective and cutting-edge solution through its “Insurance first” distribution strategy. hlpy provides a more intelligent solution to roadside assistance. The technology used allows for a seamless and familiar experience, providing clear and prompt information to help people get back on the road using the most convenient option for them. hlpy is an innovative choice for those in need of roadside assistance. Founded in 2020, hlpy has raised a total of €9.1 million to support its growth and market expansion efforts.
Wopta: Wopta Assicurazioni is an innovative insurtech that was established in Milan to offer protection for artisans, businesses, and professionals from daily risks. The company utilizes a digital platform and a network of partners across the country to provide comprehensive coverage. Wopta understands the importance of protecting one’s business and the role it plays in one’s life, and its mission is to provide the peace of mind needed. With its founding at the start of 2022, Wopta has successfully raised €3 million in funding.
Eoliann: The frequency and severity of extreme weather events have risen dramatically in recent decades, causing widespread economic damage estimated at $5.2 trillion. This trend is largely attributed to urbanization and climate change. In response, a team of innovative individuals has taken on the challenge to make the unpredictable predictable. Using satellite data and cutting-edge machine learning algorithms, they provide forecasts on the likelihood and impact of specific climate-related risks, helping to enhance the creation of insurance policies and promote responsible disclosure of ESG risks. With headquarters in Turin and established in 2022, the company has successfully raised €1.5 million in funding.
AideXa: AideXa is a fintech startup dedicated to Italian small businesses and VAT numbers. Based in Milan, the company is committed to making life easier for entrepreneurs by building simple, fast, transparent, and secure financial experiences. AideXa leverages new technologies and opportunities offered by open banking to speed up access to credit and provide a surprising, innovative approach. Since its launch in 2020, the startup has raised a total of €45 million in funding. AideXa’s mission is to facilitate the work of entrepreneurs, putting people before companies, teams before investments, and ideas before accounts.
Vedrai: Founded in 2020, Vedrai is a Virtual Agent Development Company that, thanks to artificial intelligence models, allows users to simulate the impact of decisions on business results before they are taken. Vedrai was created to help entrepreneurs make more informed decisions, making those sleepless nights when people couldn’t decide the best decision for their company a thing of the past. Their team of over 80 people, made up of data experts, IT specialists, business analysts and market analysts, helps in providing you with the support needed, to make better choices and regain control of your time. Vedrai has raised about €45 million. In November 2022, Vedrai made a strategic acquisition of Indigo.ai for an undisclosed amount.
Fido: Fido is a technology company that specializes in the analysis of digital footprint data to determine customer credit risk. The company leverages the vast amounts of data generated by the internet to provide lenders with valuable insights into the financial risk posed by potential borrowers. By using digital footprint data, Fido helps to overcome the information asymmetry that exists between lenders and borrowers when traditional credit bureau information is unavailable. Fido’s technology is designed to promote financial inclusion by providing access to financial services to parts of the population that have been traditionally excluded, particularly among young adults. Based in Milan, the company was founded in 2020 and has raised a total funding amount of €6.6 million.
tundr: Milan-based Tundr has unveiled TundrMove, a solution that combines technology with sustainable mobility. TundrMove offers a voucher for green transportation, improving the quality of life and redefining sustainable mobility. The ecosystem features a SmartCard for loading mobility vouchers and a user-friendly app to discover eco-friendly modes of transportation and estimate CO2 emissions. The SmartCard can be used with various sustainable transport providers, public transportation, car-sharing services, and electric charging stations. With a recent PreSeed investment round of €1.7 million, Tundr has raised a total of 2 million euros in just a few months. Founded in 2021, the young company aims to be the leader in providing business initiatives that positively impact people’s daily lives and promote digital and environmentally-friendly practices.
Futura: Futura is dedicated to bringing high-quality education to everyone. By leveraging AI technology, their platform offers a personalized learning experience that optimizes study time and improves test scores. With a data-driven approach and modular classes tailored to each student’s needs, Futura’s innovative EdTech solution is revolutionizing the traditional study process. The young company, based in Milan, was founded by a trio of young entrepreneurs under 25 and has so far raised €1.8 million in funding. Their goal is to create custom learning paths that adapt to each student’s pace and help them achieve their full potential.
By the way: If you’re a corporate or investor looking for exciting startups in a specific market for a potential investment or acquisition, check out our Startup Sourcing Service!