What makes Milan the best Italian city to launch and grow a start-up, thus catalysing the development of new entrepreneurs and the creation of jobs for the future? If once the leitmotif was ‘The city to drink’, today it could be called ‘The city in acceleration’. Always dynamic, constantly evolving and in search of innovative growth models, Milan stands out from architecture to economics, acting as a laboratory for new economies.
As evidence of this common feeling and value of intent, which today we could define as an ‘ecosystem’, Milan stands out for its significantly higher economic, industrial and financial fabric than the rest of Italy. In this scenario, local policies and national instruments, such as those offered by Invitalia and Cassa Depositi e Prestiti (CdP), are effectively integrated, together with the crucial role of venture capital.
A key player is the public administration, represented by the Municipality of Milan, which acts as a proximity entity, close to citizens and businesses. Last but not least in this respect, Milan is home to one of the strongest catalysts of Italian finance, past and future: the Italian Stock Exchange.
As proof of its strategic vision and ability to execute, Milan chose to collaborate with one of the most authoritative players in the industry: Dealroom, which was commissioned to provide in-depth analysis, monitoring and reporting services.
Dealroom is a data and intelligence platform specialising in monitoring and analysing startup, scaleup and technology ecosystems globally. It provides detailed information on companies, investors and market sectors, making it an essential tool for strategic decisions in technology and finance. It currently monitors around two million start-ups worldwide, supporting their growth and attracting investment. The platform has already been adopted by the French government for the French Tech programme and by the European Commission for several strategic services.
Milan is currently the ‘Po Valley Rainforest’, to quote Victor W. Hwang and Greg Horowitt in their book ‘The Rainforest: The Secret to Building the Next Silicon Valley’, published over 12 years ago. At the same time, Enrico Moretti, in his book ‘The New Geography of Work’, highlighted the importance of cities in becoming attractive poles for innovation.
The economist emphasised that the innovation industry not only generates direct, stable and dynamic employment through start-ups, but also significant induced employment. Each new innovation job can create up to five additional jobs in the catering, service, construction and other related areas.
Milan perfectly embodies this dynamic, positioning itself as a model of economic and technological development in Italy.
One of Milan’s distinguishing features, which is lacking in the rest of Italy, especially in the Centre and South, is an invisible but fundamental rule: it is the entrepreneurs and private individuals who pivot and drive the economy. They are the central engine of ecosystems, around which institutions revolve, playing a supporting role.
Here is a summary of why Milan is the capital of Italian innovation:
- finance and dynamic entrepreneurship
- more than 50 incubators and accelerators
- over 120 venture capitalists and operators/investors
- international players and the internationalisation-oriented economy
- institutions and stakeholders open to innovation
Admittedly, Milan is not yet among the leading European technology capitals, but it is also true that Italy, as a whole, has not invested resources equal to those of other countries. To better understand the dimensions of this difference, a graph from Dealroom offers a clear representation of the magnitudes at stake.
What does the report and analysis commissioned from Dealroom reveal and tell us? Not only an in-depth look at the start-up ecosystem, but also a broader look at the tech economy as desired by public actors, led by the Milan City Council and the Milan Monza Brianza and Lodi Chamber of Commerce.
Supporting this vision are their respective agencies: Yes Milano (promotion office), Milano & Partners (municipal promotion agency) and Promos Italia (the agency of the Italian Chambers of Commerce for internationalisation).
The 2024 report on Milan’s startup ecosystem highlights how the city has become one of Europe’s leading technology hubs. Here are the main numbers and trends: value of the ecosystem, the Milanese start-ups are worth a total of more than EUR 29 billion, growing 15-fold in the last ten years. Almost 50% of the value of the Italian technology ecosystem is concentrated in Milan. Venture capital investments: since 2019, Milan has attracted investments of over €500 million in 2024, ranking 15th in Europe in terms of funding received. Fintech and SaaS are the main sectors, with fintech raising over €1 billion since 2019.
Excellence and Universities: Universities such as Bocconi, Milan Polytechnic and Cattolica University have trained over three thousand entrepreneurs, contributing to the growth of the ecosystem. The MIND district, created on the Expo 2015 site, hosts advanced research centres and biotechnology companies.
Main actors: successful start-ups such as Satispay, Scalapay, Bending Spoons and Casavo are driving innovation. More than 50 incubators and accelerators operate to support the ecosystem, including PoliHub, B4i – Bocconi for Innovation and Zest (created through the merger of Milan-based Digital Magics and Rome-based LVenture).
More details on the report data can be found in this article
Future Prospects: with increased investment and the growth of emerging sectors such as life sciences, Milan is preparing to consolidate its position as a European innovation hub.
Milan’s startup ecosystem demonstrates how a mix of academic resources, institutional support and venture capital can transform a city into a global innovation engine.
To support what has been written so far and to offer further food for thought, we caught up with Layla Pavone, currently coordinator of the board for technological innovation and digital transformation of the Municipality of Milan: ‘The strategic planning of the city of Milan is characterised by a close collaboration between the public and private sectors, at all levels,’ she says. ‘This approach reflects a mindset rooted in the Milanese tradition, where citizens, companies and institutions share a strong sense of belonging and responsibility. This collective awareness makes Milan an open, dynamic and constantly forward-looking city’.
According to Pavone, Milan experiences change consciously, recognising that this very dynamism is the key to its attractiveness. This translates into a holistic strategy with a focus on innovation. The municipality works daily with its stakeholders, aware that teamwork, although complex and challenging, is essential for growth.
Moreover, it highlights how all the innovative projects promoted by the administration derive from a strong cohesion and participation between institutions, universities (Milan is home to ten universities and university-level schools), associations, companies and foundations. A distinctive element is the direct involvement of citizens in the creation of digital transformation projects. Through co-design and active listening, the aim is to understand their digital experiences and priorities, in order to offer services closer to their needs.
“This year, Milan will inaugurate the first incubator dedicated to the smart city, or rather the data-driven city, an important step to consolidate the city’s innovation ecosystem. In collaboration with Milano & Partners, a specific package has been developed to attract start-ups and investors, both national and international,’ he adds.
The Board for Technological Innovation and Digital Transformation, which she coordinates, plays a crucial role, pushing towards new collaborative models based on ‘system building’. This philosophy makes it possible to provide the city with skills, expertise and investment, in a metropolitan context that combines inclusiveness, internationality and Italian excellence.
“This alchemy makes Milan a reference point for technological innovation at national level, with excellent prospects for international growth. However, Milan’s openness does not stop at the city’s borders: the City Council is committed to sharing know-how and projects already underway with other Italian cities, aware of its role as a pioneer and trailblazer for the country system,’ he concludes.
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