Public Policy and Italian Innovative Startups Financing: Evidences from Case Studies

Abstract

Since more than two years innovative start up have been receiving in Italy great attention by the lawmaker; the aim is to sustain innovation ecosystem with spill-over effect on the whole economy. In this context financial sources availability plays a critical role; indeed new firms in general, and innovative more than others, complain the lack of capital to fuel their businesses. Heterogeneity of innovative start up makes very complex to address this issue and to target the goal. This research is a very first attempt to understand to what extent startup entrepreneurs have availed of the occasions offered by a recent Italian Law aiming to sustain innovative startups and what underpins their financial choices. Case study methodology has been adopted to tackle with idiosyncrasy of the population object of the study. Insights confirm that startup entrepreneurs don’t dislike debt and equity crowdfunding is a good way to funnel informal sources of capital and to take advantage from supply chain.