Ahead of our oversubscribed event with Edtech Italia, featuring work ongoing by CDP (Cassa Depositi e Prestiti) to support the ecosystem, we took a closer look at the Italian market to better understand the forces shaping the direction of Italy’s Edtech sector, including the macro environment, education system and burgeoning tech scene. This may also serve as an overview for companies considering expanding into the Italian market...!
The Italian tech scene is on the rise.
It hasn't always been this way. Italy’s economic challenges of the noughties and tens are widely documented - high public debt, slow GDP growth, and regional inequalities have long been barriers to progress. But the Italian economy has seen resilience and gradual recovery in recent years, driven in large part by increasing innovation within tech and sustainability sectors. Significant reforms and EU recovery funds, particularly post-Covid-19, have catalysed substantial digital transformation and investment.
It is therefore unsurprising that VC interest in the market is accelerating. $1.3B was raised by VC funds in Italy in 2023, nearly double the $665M raised by VC funds in 2022- this data is from the State of Italian VC by P101 and Dealroom, seen below.
Indeed, the market is embracing a rise in startup activity across a diverse range of sectors. One such sector is Edtech, along with its intersections with HRtech, Fintech, Climatetech, Healthtech and others.
We hear on the grapevine that Edtech and HRtech startups specifically have seen a major increase in investment between 2023 and 2024 - keep an eye on Edtech Italia for more on this soon...!
It is exciting to see Italian Edtech and adjacent areas beginning to flourish, steadily transforming the country's education landscape with companies having impacts stretching far beyond its borders.
The Structure of the Italian Education System
Italy's education system, like many others in Europe, is a structured continuum from early childhood to adult education, overseen by both national and regional authorities.
The Ministry of Education and Merit (Ministero dell'Istruzione e del Merito, MIM) and the Ministry of University and Research (Ministero dell'Università e della Ricerca, MUR) are responsible for the general administration of education at the national level.
We took a brief look at the education phases, including key governance, active policies and levels of tech use.
Education Phase | Governance | Key Policies and Initiatives | Current Level of Technology Adoption |
Early Childhood (0-6) | - Nurseries (<3 years): Regional authorities. - Pre-primary (3-6 years): Ministry of Education (MIM). | - Regional legislation guides nurseries. - MIM defines policies for pre-primary schools (Eurydice). | - Minimal integration of technology. - Some pilot projects introduce digital tools for interactive learning (PNSD). |
Primary (6-11) | National curriculum set by MIM, implemented by regional authorities. | - National Plan for Digital Schools (PNSD) emphasises digital learning (PNSD). | - Full integration of interactive whiteboards and tablets for learners. - Teacher training for tech-enabled classrooms (PNSD). |
Lower Secondary (11-14) | Schools have autonomy within national guidelines set by MIM. | - Continuation of the PNSD, including coding workshops and digital literacy programs (Eurydice). | - Focus on introducing coding and basic robotics. - Use of learning platforms to complement teaching (PNSD). |
Upper Secondary (14-19) | - General, technical, and vocational tracks. - Joint governance between MIM and regional authorities for vocational schools. | - School 4.0 initiative: Funding for innovative teaching strategies and digital transformation (School 4.0). | - High adoption in technical and vocational schools. - Use of PCs, tablets, and interactive whiteboards (School 4.0). |
Tertiary Education | Universities and higher education institutions operate autonomously under the Ministry of University and Research (MUR). | - AI literacy is part of Italy's AI Strategy 2024-2026 (AI Strategy). - National guidelines promote online and blended learning. | - Wide adoption of e-learning platforms, especially post-COVID (AI Strategy). - Increasing focus on AI-related reskilling programs (Eurydice). |
Adult Education | Regions organize adult education systems within national lifelong learning strategies. | - Elements of AI course launched to improve adult AI literacy (AI Watch). | - Strong reliance on e-learning platforms. - Flexible, online courses for professional upskilling and reskilling (AI Watch). |
Italy’s Startup Ecosystem
Italy’s startup ecosystem has undergone remarkable growth, solidifying its position as one of Europe’s emerging innovation hubs. Italy boasts an increasingly vibrant culture of entrepreneurship, driven by supportive policies, a growing talent pool, and burgeoning investor interest.
Milan stands out as Italy’s innovation capital, home to prominent accelerators like Le Village by CA. Venezia is home to FuturEd by cdp. Rome and Turin are also key players, with initiatives like LUISS EnLabs, Endeavor, and B4i fostering collaboration among startups, universities, and corporates.
So what is driving this growth?
Policy Support: The Italian Startup Act provides startups with simplified regulations, tax breaks, and financial incentives. Additionally, the “Smart&Start Italia” program offers grants and loans for high-tech ventures. Some examples, lifted from P101's report with Dealroom are below.
Increased Funding: Italian startups now attract an average of $2.73 million in funding (Pitchbook & Dealroom data). While this figure trails some other major European nations, it reflects a growing appetite for risk among local and international investors.
Collaborative Networks: Co-working spaces, innovation hubs, and tech festivals like Future of Work House, Talent Garden, Didacta, and Italian Tech Week create a sense of community, fostering partnerships, and knowledge sharing.
Success stories and associated networks: The growing profile of international success stories that were spawned in Italy, such as Docebo. You can see P101 and Dealroom's take on these flywheels below!
Scaling beyond Italy remains a challenge for some Italian startups, with a noticeable funding gap for later-stage ventures but there are growing relationships between key ecosystem operators and international funds focused on Series A stages and beyond.
The Rise of Intersectional Startups
1. Edtech and HRtech: Bridging the Skills Gap
Italy’s aging workforce, paired with a fast-evolving job market, has created a significant skills gap. Startups operating at the intersection of Edtech and HRtech are stepping in to address these challenges by designing platforms that prepare learners for real-world employment while meeting the talent demands of industries. Many startups are leveraging AI to personalise career development. Platforms assess user skills, recommend tailored learning pathways, and even match candidates with employers through integrated job boards. Apprenticeship-matching platforms are also on the rise, combining virtual learning with hands-on industry experience.
Startups/ initiatives leading the charge:
Docebo: A world-leading LMS enabling clients to create learning programs that drive engagement, productivity, advocacy, and connection with your customers, partners, and employees.
Talent Garden: This Milan-based startup blends Edtech with HRtech to offer training in digital skills such as coding, UX design, and digital marketing. By focusing on practical, employer-relevant skills, it addresses the needs of both learners and businesses.
Jet HR: Jet HR enables companies to pay salaries, rent computers and approve holidays in one place.
2. Edtech and Fintech: Making Education Accessible
Access to quality education remains a challenge for many Italian families, especially in regions with economic disparities. Fintech-powered Edtech startups are addressing this by offering innovative financing models to make education more accessible. Some platforms offer Income Share Agreements (ISAs), where learners pay for their education only after securing employment. Blockchain-based credentialing systems are being developed to secure and validate student records and qualifications, ensuring trust in digital learning outcomes.
Startups/ initiatives leading the charge:
Finanz: Finanz is the first financial super app that helps you learn, save, and invest all in one single platform (they like to be referred to as the Duolingo of money)
FunniFin: FunniFin is a platform that aims to enhance financial literacy through AI, gamified learning and personalised financial education.
Consono: Consono is the first welfare platform in Italy, dedicated to financial well-being in the company, which helps employees maintain serenity at work, through financial education, the digital management of salary advances and the promotion of ethical welfare within the work environments.
3. Edtech and Climatetech: Building a Sustainable Future
Sustainability is not just a buzzword in Italy. Platforms developed by Italian startups are using virtual reality (VR) to simulate environmental scenarios, allowing learners to explore the impact of actions like deforestation or renewable energy adoption. Startups are also partnering with businesses to create green skills certification programs, ensuring that graduates are ready for careers in renewable energy, sustainable design, and environmental policy.
Startups leading the charge:
Aworld: created in Italy, AWorld has partnered with the United Nations and the European Commission on their common goal to drive global education on the Sustainable Development Goals and promote active citizenship.
4. Edtech and Healthtech: Empowering Health Literacy
The Covid-19 pandemic underscored the importance of health literacy and digital health solutions. Startups merging Edtech and Healthtech are creating platforms that educate individuals about wellness, disease prevention, and mental health management. Wearable tech integration allows real-time feedback on health-related behaviours, combined with educational recommendations tailored to users’ needs. Telehealth platforms are embedding Edtech modules to empower patients with knowledge about their conditions, enhancing the effectiveness of remote consultations.
Startups leading the charge:
MMI: leading edge Surgery tech- the company's robotic system can assist surgeons as they perform suturing, ligation, anastomoses, and coaptations on small anatomical structures.
EpiCura: marketplace offering health, medical, physiotherapy, veterinary, and home care services in major Italian cities.
Italy’s Edtech ecosystem is not operating in isolation; it is thriving as part of a broader innovation network that spans a broad set of adjacent sectors. Startups at these intersections are driving a new era of problem-solving, where education is not just about acquiring knowledge but about applying it in transformative ways.
As Italy continues to invest in digital infrastructure, workforce training, and sustainability, the opportunities for Edtech startups to innovate across these domains are only growing.
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