The Italy Venture II Fund has designed a program aimed at providing quick assistance to high-potential startups in southern Italy that are growing quickly and offer innovative technologies and products. These startups operate in markets with significant growth potential, but have suffered setbacks due to COVID-19, continuing to attract both accelerators and third-party investors who believe in them and want to contribute financially.
The initiative is called Seed per il Sud and uses a merit-based system to select startups to support, following the usual practice of CDP Venture Capital Sgr: Seed per il Sud chooses startups in southern Italy that are already funded by qualified investors ready to help them again, and that lack the capitals to move ahead.
Support the ecosystem of startups in southern Italy with the aim of preserving the country’s future industrial patrimony during the emergency prompted by the COVID-19 pandemic.
Provide new resources for companies from the very beginning in order to support the establishment and development of a quality deal flow for future investors.
Stimulate and support incubators and/or accelerators.
Attract private capital to an often-overlooked segment, matching startups and qualified individuals.
How much assistance is being offered?
The program finances companies in the seed/pre-seed stages, whose legal and operational headquarters are located in southern Italy (Abruzzo, Sardegna, Campania, Basilicata, Puglia, Molise, Calabria, Sicilia). Seed per il Sud provides an investment by Italy Venture I Fund totaling €6 million, with all payments released by September 30, 2020. Single payments can total up to €300,000 for each Startup financed. The startups will be chosen by the fund’s investment team, and will be selected among the companies currently in its portfolio and those in the pipelines of third-parties such as accelerators.
How will the money be released?
The transactions will be carried out by accelerators, third-party investors, and/or existing shareholders, which are matched in accordance with the capital invested. More specifically, the transactions will be carried out through a “convertable” loan or, alternatively, with capital increases that have already been approved or are in the process of being arranged. Private entities invest 30% of the capital, while the Fund provides 70%.
Fondo Italia Venture II aims to provide startups with resources that can help them continue to grow for at least six to eight months. The goal is to help them overcome the current situation and look for further investments, if necessary.