Turin, March 18 – A new report highlights a concerning trend in Turin’s startup ecosystem: investments have fallen by 15% in 2025, with the city now attracting ten times less funding than Milan. This stark contrast underscores a growing disparity in Italy’s innovation landscape, as revealed by a study conducted by the Investors Club in collaboration with ToTeM.
Turin’s Tech Ecosystem: Growth Amidst Declining Investments
Despite the significant drop in funding, Turin’s high-tech sector shows some positive indicators. The city’s 665 innovative companies generate nearly half a billion euros in revenue, with an annual growth rate of 7%. These startups employ over six thousand people, contributing to a post-industrial future for Turin.
However, the report emphasizes that this revenue pales in comparison to the investments Milan attracts. While Turin secured 100 million euros in startup funding, Milan’s ecosystem garnered over a billion euros, experiencing a 16% growth, consistent with the national trend.
Key Findings from the Report:
- Investment Decline: A 15% decrease in startup investments in Turin in 2025.
- Funding Rounds: A more than 30% reduction in funding rounds, with only 56 recorded.
- Revenue Growth: Turin’s 665 startups generate almost 500 million euros in revenue, growing at 7% annually.
- Employment: Over 6,000 people are employed in Turin’s startup sector.
The Deep Tech Opportunity: A Glimpse into Turin’s Future
Despite the overall decline, the investment landscape in Turin offers insights into the future direction of its economy. A significant 68% of the startups that secured funding operate in Deep Tech, focusing on advanced scientific and engineering discoveries, ranging from biotechnology to aerospace. This specialization suggests a strategic shift towards high-value, research-intensive industries.
Internationalization and Success Stories:
The report also highlights a growing internationalization trend among Turin’s startups, with 90% having an international focus and over 40% of team members being non-Italian. Several companies have achieved notable success:
- Tretau: Raised over 20 million euros for technologies improving electric battery efficiency.
- Carpe Carbon: Active in carbon dioxide removal from the atmosphere.
- Kither Biotech: Secured almost 6 million euros in venture capital for developing new pulmonary therapies.
Notably, the automotive sector is largely absent from the list of promising startups, indicating a broader transformation of Turin’s industrial landscape.
Challenges and Comparisons with European Cities
Turin’s position in the ranking of attractive cities for capital raising has slipped to fourth place, behind Genoa, though it remains second in terms of the number of investments, with only Milan ahead. The city still lags behind other non-capital European cities like Lyon, Munich, Rotterdam, Barcelona, and Zurich, which boast thousands of startups.
Furthermore, Italy as a whole struggles to produce “national champions” – startups that evolve into medium and large companies leading their respective sectors.
Regional Initiatives and Future Outlook
In response to these challenges and opportunities, the Piedmont Region and the Polytechnic University have formed an agreement to establish an aerospace city in Turin, aiming to create a hub for SMEs. Other initiatives include a partnership between CDP and Confindustria for Piedmont, allocating 4.6 billion euros to support local businesses.
The “Aerospace City” in Turin is set to launch new laboratories worth 23 million euros by 2026, promising new jobs and economic growth. Additionally, a “Suk of Artificial Intelligence” is emerging in Turin, where companies can acquire algorithms, signaling a vibrant future for technological innovation.
While Turin faces an uphill battle in attracting investments compared to Milan, its focus on Deep Tech and international collaboration, coupled with strategic regional initiatives, positions it for a specialized and innovative future.
Source: https://torino.corriere.it/notizie/economia/26_marzo_18/startup-investimenti-in-calo-15-ora-milano-vale-dieci-volte-torino-il-futuro-e-nel-nel-deeptech-dalle-biotecnologie-all-aerospazio-fb4138e0-022c-47fc-b4ff-7c1d5f6eexlk.shtml
