We need institutions to support the startup ecosystem. It is a permanent theme, it is a theme that has seen the scenario evolve with even key moments such as the establishment of the Startup Act in 2012 and the birth of CDP Venture Capital in 2020, We are now at another key moment that follows two fundamental strands: the European one where the EU, also and above all in the light of the global scenarios that are taking shape in recent months, needs to take a much stronger, clearer and more united stance in supporting business innovation, and here is the proposal of the 28th regime which we have written about here and which represents the evolution of a strategy that the various member states are adopting at different speeds and which must lead to a true single market for start-ups and investors because only in this way can we hope to give concrete form to exponential growth capable not only of making Europe a global centre of innovation, with all its specific characteristics, but also of making it competitive against the other major forces: the USA and China mainly.
What will happen today is whether or not the Italian institutions will approve the changes proposed in the DDL Concorrenza, which go, or at least one hopes they will go, in favour of further support for start-ups. This is an important step also in view of the aforementioned issue of the 28th regime because the manifestation of a willingness on the part of national governments towards support for start-ups is a further driving factor for the success of the desired European framework.
And then there is also another piece of news within the news: the fact that the two sector associations Italian Tech Alliance and InnovUp have decided to take joint action on the amendments to the Competition Bill, which have been filed in the Chamber of Deputies, and this is a further sign that there is a structural need because, as we have said so many times, start-ups and business innovation are fundamental for the future of the country, the EU and to be able to overcome the social, environmental and economic challenges that the historical moment poses.
The note from the two associations emphasises that among the main new features introduced, of particular note is the rule that more closely involves institutional investors, who are called upon to allocate, in order to benefit from the current tax incentives, a share of their qualified investments in the venture capital asset class equal to 5% in 2025 and 10% in subsequent years; the replacement of the new requirement of 20,000 euro of share capital and employee, for remaining in the register of innovative start-ups, with a series of alternative requirements to be obtained after the third year and the possible extension from 5 to 9 years if even more challenging parameters are met, a gradualness that will make it possible to reward only those companies that are truly capable of competing with the market and reaching an international dimension the raising of tax benefits for those investing in start-ups from 50% to 65% and the possibility of continuing to benefit from the incentives even in the event of the start-up’s bankruptcy, as well as the anticipation of the benefit in the event of a converting investment; the extension of the new tax credit for investments in start-ups made by certified incubators to certified accelerators as well.
“We welcome the amendment tabled in the Chamber, which has led to changes that go in the direction of what has long been requested and discussed,’ comments Francesco Cerruti, General Manager of the Italian Tech Alliance. ‘There are still margins to make the measures more incisive and effective, both in this and other measures: we will therefore continue to work with the aim of contributing to the growth of the ecosystem also from a regulatory point of view. As the path of the Competition Decree also teaches us, things can change very quickly. For this reason, the goal is that the proposed amendments to the Budget Law will be accepted, particularly on the web tax and the cap on deductions. If confirmed in the continuation of the legislative process, today’s steps forward can be an important brick in the path of increasingly significant growth of the Italian innovation ecosystem’.
“With the approval of the amendment presented by the Government to the DDL Concorrenza (Competition Act), the long journey that began during our event for the 10th anniversary of the Startup Act with the call for an update of that regulatory framework comes to an end. A revision of the 2012 regulation that today finally sees the light of day thanks to the collaboration between associations and institutions and the work of the many professionals who have contributed to this result,’ says Giorgio Ciron, Director of InnovUp. These changes bring our regulatory framework closer to international best practices and can help support all those doing innovative business in Italy. However, this is a starting point, and certainly not a point of arrival, for the Italian innovation supply chain; in fact, we will be watching the implementation of the new measures and, above all, the proposed changes to the Budget Law, such as the web tax and the cap on deductions, without which some of the above measures will prove useless. A significant step forward has been taken but we are not satisfied with steps, innovation needs to run in order to express its potential and contribute to the growth and sustainability of our country in the future’. (photo by Marco Oriolesi on Unsplash)
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