Only 15 per cent of Italian private-equity investment in 2005 went to venture-capital operations, compared with a European average of 27 per cent. And even of that, only a marginal portion, far smaller than in the other major European countries, went to start-ups. Investment in high-technology sectors is minimal.
A good part of the capital is of foreign origin; the domestic component comes largely from banks, while the role of other investors, especially pension funds, is scant. As a rule, small firms with highly innovative projects are unable to raise funds directly in the capital market, nor can ordinary bank lending suffice.