While investment levels have dropped by 38% compared to 2023, the number of agtech and foodtech startups continues to rise in Italy, signaling resilience and potential for innovation.
These are the key findings from the latest Italian report, The State of Foodtech in Italy, compiled by Eatable Adventures for the Verona Agrifood Innovation Hub.
In 2024, total investments in the sector reached €103m, marking a sharp decline from the previous year’s record levels. This trend aligns with global and European investment patterns, which have also seen a slowdown, albeit at a less pronounced rate—7% worldwide and 19% in Europe. Despite the downturn in funding, Italy’s agrifoodtech ecosystem remains vibrant, with 407 active startups, up from 341 in 2023.
Northern Italy continues to be the primary hub for startups in the sector, with 50% of new companies emerging in the region. Lombardia leads with 31% of startups, followed by Emilia-Romagna (11%), Piemonte (10%), Veneto (9.7%), and Lazio (9.7%). In contrast, southern Italy, despite its strong agricultural potential, still struggles to establish a solid entrepreneurial ecosystem in the sector.
Italian agrifoodtech founders typically have a strong academic and technological background. The report highlights that 38% hold a PhD, while nearly 30% have a master’s degree. Experience is also a key factor: 60% of founders have previous entrepreneurial experience, and an equal percentage have a background in agrifood industries. Age-wise, the majority of founders (73%) fall between 25 and 45 years old, while only 6% start their ventures before 25 or after 56.
Technological innovation is at the core of Italy’s agrifoodtech sector. The most adopted technologies are artificial intelligence (43%), biotechnology (32%), and IoT (30%), with a strong focus on automation, robotics, and new cultivation systems. While 77% of startups develop their technology in-house, only 15% of innovations stem from collaborations with universities, underscoring the need for stronger synergies between academic research and entrepreneurship.
Intellectual property protection is gaining importance among Italian startups. In 2024, 75% of companies secured patents, a significant increase from 40% in 2023. Trademark registration has also grown, reaching 82%. However, 19% of startups still operate without any form of legal protection, exposing themselves to competitive risks.
Despite the ecosystem’s dynamism, challenges remain. The number of employees in the sector has declined by 27%, primarily due to the closure of scale-ups and the prevalence of small teams—74% of startups operate with five or fewer employees. Investment rounds exceeding €1m have decreased, while smaller rounds of up to €350,000 now represent 60% of funding activities. This shift reflects a more cautious and strategic investment approach, driven by global macroeconomic uncertainty.
Inclusivity remains another pressing issue. Only 23% of agrifoodtech startups in Italy have female founders, and women represent 36% of team members.
“After the investment boom of 2023, 2024 presents a more measured and cautious scenario, yet one with immense potential,” said Alberto Barbari, Regional VP Italy at Eatable Adventures.
“Despite the challenges, the Italian AgriFoodTech ecosystem has all the ingredients to establish itself as a global leader. The key lies in fostering a more open approach to innovation, strengthening collaborations between industry, academia, and startups. Reinforcing these networks is crucial to ensuring a more innovative and sustainable future, attracting new talent, promoting inclusivity, and creating strong links between research and entrepreneurship to drive the Italian ecosystem forward.”
