Italian tech thrives despite low funding: Rise in deal numbers reflects robust resilience in H1 2025

Italy’s technology landscape has experienced quite the shakeup in H1 2025. Despite a proclaimed overall increase in the number of deals, there seems to be a conspicuous downturn in the value of the funding being allotted. There have been only 11 tech deals valued at €10m and above. This marks a stark contrast to the previous year, where multiple sizable Italian raises captivated attention on a global scale.

Key players such as software titan Bending Spoons, leading space venture D-Orbit, and innovative surgical robotics firm Medical Microinstruments, each had significant contributions, raising a staggering $155m, $166m, and $110m respectively. This raises an intriguing question - what lies behind the decline in blockbuster deals this year?

In the first half of 2020, 207 investors backed Italian startups, with 57% being Italian. Fast forward to 2025, the number catapults to 380, with only 40% being Italian. This significant influx of foreign investment indicates an expanding horizon for Italian tech.

One classic example of this expanding horizon is Cubbit itself, which last year raised $12.5m from London investors LocalGlobe and ETF Partners. This marked the first-time LocalGlobe ventured into Italian investments.

Emphasising the growing foreign interest is the VC firm Creandum’s €12m investment in fintech firm Sibill, a company dedicated to simplifying financial and administrative workload for SMEs. This investment is noteworthy, as it is the first time Creandum has led a deal in Italy.

The most significant Italian deal of the year so far belongs to the Milan-based HR and paywall platform Jet HR, raising €25m in June. This emerging success story serves as a glowing testament to the resilience and potential of the Italian tech sector despite the funding decline. Tech in Italy has come a far cry from what it used to be. It seems the Italian tech scene, even in the face of a funding downturn, is set to rise.