In 2024, Italian corporate bond issues exceeded €90 billion and venture capital soared above €8 billion, but small firms remain sidelined
Bond market: large corporations dominate, SMEs left behind
In 2024, the total gross issuance of corporate bonds by Italian companies, including foreign subsidiaries, exceeded €90 billion, confirming the bond market as a crucial funding channel. However, over two-thirds of these placements came from a small number of large groups, while the presence of first-time issuers diminished.
A notable trend is the growth of short-term bonds: the share of securities maturing within 12 months has more than doubled since 2019, driven by the widespread use of commercial papers by large firms. This points to a preference for flexible tools, but also signals long-term planning fragility.
Stock market slowdown: more delistings than IPOs
The Italian stock market faced a sharp decline in 2024. Only 20 new listings were recorded, mostly by small businesses, while 27 companies left the stock exchange (delistings), particularly from the main segment.
Between 2021 and 2024, non-financial firms lost over €100 billion in market capitalization, highlighting the ongoing difficulty for the Italian stock exchange to offer a credible growth path for enterprises.
Venture capital gains ground, but Italy still lags behind
The bright spot in 2024 was the growth of private equity and venture capital. According to Invest Europe, over €8 billion were invested in about 400 companies, with an average ticket slightly above €20 million.
This confirms an increasing focus on strengthening company capital, but Italy still lags behind other European countries. The key reasons? Too few innovative startups, small-scale VC operators, and weak exit strategies, often hampered by illiquid markets and fragmented regulation.
EU and national reforms: toward an inclusive capital market
In 2025, the European Commission launched a set of measures to support venture capital development, including:
- more favorable prudential treatment for institutional investors
- reinforced funding via the European Investment Bank
- actions to remove barriers to capital market integration in the EU
In Italy, the government has been granted powers to reform the Consolidated Finance Act by March 2026, aiming to expand the use of alternative finance tools at every stage of a company’s lifecycle.
Active measures already in place include tax incentives for VC investments, long-term savings plans (PIRs)channeled into the real economy, and a new law requiring pension funds to allocate part of their capital to venture capital to maintain tax benefits.
Unimpresa’s view: bridging the gap is urgent
Giovanna Ferrara, president of Unimpresa, says Italy has strong potential, but suffers from deep structural weaknesses.
The biggest concern? The gap between large corporations, which easily access capital markets, and SMEs, which often struggle to find reliable partners or are excluded altogether.
Italy needs:
- simplified bureaucracy
- transparent rules
- incentives for medium-to-long term investments
Unimpresa calls for a pluralist financial ecosystem where bank loans are not the only option, and where small businesses can access the tools they need to pursue their ambitions.
FAQ
1. What are corporate bonds?
Financial instruments issued by companies to raise capital, promising to repay it with interest.
2. Why do SMEs struggle to access capital markets?
Because of complex regulations, limited advisory services, and a lack of financial culture.
3. What are commercial papers?
Short-term debt securities used to obtain quick liquidity without relying on banks.
4. Why are IPOs declining in Italy?
Due to market instability and a decreasing perception of the stock exchange as a growth enabler.
5. What is venture capital?
Equity financing provided to high-potential startups in exchange for company shares.
6. What are the limits of Italian VC?
Few startups, small-scale investors, and difficult exit strategies due to illiquid markets.
7. What are PIRs?
Tax-incentivized long-term savings plans aimed at supporting the real economy.
8. Is Italy’s VC legislation competitive?
Yes, it’s aligned with EU standards and includes tax benefits for both direct and fund-based investments.
9. What does the reform of the Finance Act aim to do?
Broaden capital access across all business stages through simplification and incentives.
10. What is Unimpresa’s main recommendation?
To create an inclusive financial market that supports SME growth and long-term investments.
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