Nickname: gpo

Review: When it comes to risk, Italians have a very low tolerance. This is not just a theory, there is plenty of documentation on it. In such a risk-averse environment, the rare VC tends to be focused on M&A rather then start-up opportunities. Futhermore, the general orientation of young people is toward safety, security, and low risk. This has affects their investment style and their attitude about life in general. It's too bad that times have changed and there is no government (left or right) that can offer the same social privileges that earlier generations enjoyed. Difficult times may be ahead...

Date reviewed: Apr 19, 2006 6:06 PM

Nickname: cla114

Review: It is true that in Italy there is no government support for new enterprises, but that's hardly something that can be said for the US, too. I think the real difference is the absence of true venture capitalists in such a small market like Italy. The venture capitalists in Italy focus mainly on buyouts and not on startups, and this means there is little capital available for startups. However, several local authorities are filling this role and often you can get some funds from regions, municipalities, or the EU. The real problem with Italian small new companies is that often they do not make the step from small to medium-large company because they lack equity capital. We do not have a Nasdaq or a sufficiently developed market to raise equity. And many, many times, when a company is in a position to be able to do an IPO and get some important equity funding, the owner is not willing to do it because he does not want to lose ownership of the company. It's more of a cultural issue.

Date reviewed: Apr 12, 2006 9:00 AM