Stefano Firpo Head of Technical Secretariat of Italian Minister of Economic Development

#RestartItalia: proper industrial policy Entrepreneurship Job Creation Innovation GROWTH Meritocracy Social Mobility

Building a new policy: how? Bottom-up approach and stakeholder consultations Public Task Force (12 top experts) Open Consultation with +2,000 key players L AW 221/2012: I TALY ’ S “S TARTUP A CT ”

Definition of «innovative startup» a) established for no longer than 48 months b) reside or be subject to taxation in Italy c) turnover lower than 5 million € (around 6.4 million $) d) it does not distribute profits e) its core business consists of innovative goods or services of significant technological value f) it does not originate from a merger, demerger or divestment process g) and 15% of its costs are related to R&D; OR at least one third of the team is made up of people who either hold a PhD or are PhD candidates at an Italian or foreign university or have conducted research for at least three years or at least two thirds of the team is made up of people holding a Master’s degree; OR it is the owner or the licensee of a patent or a registered software

#RestartItalia: main support measures Significant cuts in red tape Innovative startups are registered online through self-certification No fees due to Chambers of Commerce for the registration of any kind of document Flexible corporate management tools: S.r.l. = S.p.a. Zero tax regime for companies suffering systematic losses Fail-fast mechanism

#RestartItalia: main support measures Tailor made labour law Flexible labour contracts applicable for the whole startup’s life cycle Variable pay depending on the startup’s performance Workers & consultants can be payed with stock options & work for equity (taxable as capital gain!) 35% tax credit on all costs for hiring highly- qualified personnel

#RestartItalia: main support measures Incentives for funding & investment Robust tax relief on investments into startups’ equity by angel investors, VC and corporates Startups can raise money through equity crowdfunding online portals (1 st tailor-made law on an international level) Free, fast-track public guarantee on bank loans, covering 80% of the lent sum

Visa for extra-EU citizens willing to set up an innovative startup in Italy Centralized procedure (ISV Technical Committee) The Committee evaluates the application (CV + business model) within 30 days Financial resources for at least EUR 50,000 are required Process entirely managed online, through a dedicated website: italiastartupvisa.mise.gov.it Attracting global talents: #ItaliaStartupVisa

Nurturing high-tech startups 220 million EUR made available for zero interest rate startup loans Lending covers up to 80% of investment programs amounting up to 1,5 million EUR Target: innovative startups and individuals willing to set up one within 60 days, including extra-EU citizens holding a Startup Visa Fast-track for programs financed for at least 30% with capital provided by qualified investors Boosting innovation: #Smart&Start

More than 2,700 high-tech startups: 58% located in Northern, 21% in Central and 21% in Southern Italy Sectors: 80% operate in services, 18% in industry & craftsmanship, 2% in trade 600 million euro turnover with over 9,000 employees Online database: startup.registroimprese.it The Italian Startup Ecosystem

31 certified incubators (21 in Northern Italy) 30 employees and 3 million euro turnover per company Incubators/accelerators

 2,755 new startups  105 euro mln of additional credit lines secured to 200 innovative startups  31 certified incubators  First startup visas being issued  10 equity crowdfunding portals  First tax incentive being granted for highly qualified personnel and equity investments Results so far

√ Made in Italy: a key driver for the scaling-up of your startup √ High-quality and competitive skills √ Grassroots manufacturing culture (fast and cheap prototyping) √ Artistic and cultural heritage is an untapped asset √ Italy is a gateway to strategic markets √ Italy’s lifestyle as an asset to enhance working environment √ Advanced consumption habits, with opportunities for expansion for innovative products and services Strenghts

Poor social recognition of the entrepreneur’s role Specialized finance still underdeveloped (especially VC in expansion rounds) Lack of dialogue & interaction between traditional companies & startups (acqui-hiring, procurement, R&D outsourcing, exit) Education & Research still segregated from business (technology transfer, patents) Excessive number of public & private incubators/accelerators, usually not specialized in high value services (just real estate services) The ecosystem is very fragmented and overly individualistic Weaknesses

 Instill entrepreneurial culture and innovation in schools (in collaboration with the Italian Ministry of Education, University and Research)  Develop and internationalize VC and corporate VC financing, especially for mature investment rounds (refinancing of VC Fund of Funds held by the Italian Investment Fund)  Facilitate networking between traditional companies and startups (tax credit on contracted R&D activities)  Foster cross-fertilization within universities (4 “Contamination Labs” already launched in southern Italy)  Promote networking between incubators, institutions, research centers and financial institutions (we need to develop a stronger team work attitude)  Introduce greater coordination between public intervention at national and regional level (new guidelines)  Spend EU funds more effectively (supporting startups in the participation in European tenders) Next steps in our agenda

GEC 2015 – March 2015, Milan The Global Entrepreneurship Congress is an inter-disciplinary gathering of startup champions from around the world where entrepreneurs, investors, researchers, thought leaders and policymakers work together to help bring ideas to life, drive economic growth and expand human welfare EXPO MILANO 2015 – 1 May - 31 October 2015 Expo Milano 2015 is a non-commercial Universal Exposition with very unique and innovative features. It is an incredible social and entrepreneurial process which gathers a large number of important players from all over the world to contribute to the themes of Feeding the Planet and Energy for Life Upcoming international events in Italy

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