Startup funding in Italy: a 2026 map for founders, including those from abroad
There is no perfect grant for everyone. There is a right instrument for the stage you are at, and for where your company is based.
Which funding can a foreign-founded startup in Italy apply for?
More than most founders expect. The main national loan for tech startups, Smart&Start Italia, accepts teams of individuals who want to set up an innovative startup in Italy even if they live abroad, holders of an Italian startup visa, and foreign companies that commit to opening a seat in Italy, according to Invitalia's eligibility page. The EIC Accelerator is European, and applicants from outside the EU can relocate their company before the full application. The SME Guarantee Fund works through any Italian bank you borrow from.
The grant schemes for new businesses are different. They are tied to the founder's age and employment status, or to the region, so read their conditions before you plan around them.
What funding is available for startups in Italy in 2026?
| Instrument | What you get | Who it is for | Status |
|---|---|---|---|
| Smart&Start Italia (Invitalia) | Interest-free loan for up to 80% of eligible costs (90% in some cases) on plans of €100,000 to €1.5 million | Innovative startups up to 60 months old, or teams that will form one | Open, first come first served; rules updated by a decree of 13 July 2026 |
| ON - new businesses at zero interest (Invitalia) | Up to 90% of costs on projects up to €3 million | Companies up to 60 months old, majority owned by people aged 18 to 35 or by women | Loans only since 1 July 2026: grant funds ran out |
| Self-employment schemes: Autoimpiego Centro-Nord, Resto al Sud 2.0 (Invitalia) | Vouchers plus grants of 60% to 75% on programmes up to €200,000 | Under-35s who are inactive, unemployed or low-paid, by region | Open since 15 October 2025 |
| SME Guarantee Fund | A public guarantee on bank loans, not cash | SMEs, startups and innovative SMEs, through a bank or guarantee consortium | Running |
| EIC Accelerator (EU) | Grant below €2.5 million plus equity of €1 to €10 million | Startups and SMEs with innovation at TRL 6-8, or individuals planning one | Short proposals any time; 2027 cut-offs not yet published |
| Business angels, venture capital, crowdfunding | Capital in exchange for shares | Startups with a product and early traction | Market terms |
Are there startup grants in Italy?
Yes, but almost always with strings attached. Since 15 October 2025 Invitalia runs Autoimpiego Centro-Nord for 18 to 34-year-olds who are inactive, unemployed or working poor in twelve central and northern regions, Lombardy included: a voucher up to €30,000 and a 65% grant on programmes up to €120,000. A twin scheme, Resto al Sud 2.0, covers the eight southern regions with higher rates. Neither is reserved for tech startups.
Smart&Start Italia is a loan, but part of it can turn into a grant: startups based in the south repay only 70%, and when outside investors put money into the company, a share of the loan can be converted. The details are in our guide to Smart&Start Italia. One scheme to watch: Invitalia announced on 30 June 2026 that grant money for ON had run out, so applications from 1 July 2026 get the subsidised loan only.
Is the EIC Accelerator right for an early-stage startup?
Only if your technology is already proven in a real environment (TRL 6 to 8) and you have a plan to scale quickly. The EIC Accelerator pairs a grant below €2.5 million, to be spent within 24 months, with equity investment of €1 million to €10 million. A short proposal (a 12-page form, a pitch deck of up to 10 slides and a video of up to 3 minutes) can go in at any time and usually gets feedback within four to six weeks.
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Full proposals have fixed dates: the last one in 2026 was 4 November, and the 2027 calendar had not been published in October 2026. A sharp deck matters at every step; our guide to startup pitch deck structure starts from what evaluators look for.
How does the SME Guarantee Fund help a startup borrow?
It does not lend money; it guarantees part of what a bank lends you, so the bank asks for fewer personal guarantees. The Ministry of Enterprises lists an 80% direct guarantee for startups, innovative startups and innovative SMEs on certain types of operation. You do not apply to the Fund yourself: your bank, or a guarantee consortium, does it for you.
When should you look for investors?
When you have more than an idea to show. Business angels usually come first, alone or in groups; our explainer on the seed round covers how a first round works. Italy also has a public venture investor, CDP Venture Capital, which runs direct and indirect funds, including one backing accelerators at pre-seed and seed, and takes applications through its own portal. Innovative startups can also offer shares to the public through authorised crowdfunding portals, and can pay suppliers and staff in equity, which lowers the cash you need: see paying developers with equity.
Which funding should you start with at each stage?
| Stage | What you must be able to show | Look first at |
|---|---|---|
| Idea, company not yet formed | A real problem and a team with the right skills | Smart&Start as a team of individuals; self-employment schemes if you meet the age and status rules |
| Pre-seed, MVP in progress | A detailed spending plan and credible technology | Smart&Start Italia, ON, first business angels |
| Seed, first paying customers | Repeat use, revenue, improving metrics | Angels and early-stage funds, equity crowdfunding, the Guarantee Fund for bank credit |
| Growth, proven technology | A mature product (TRL 6-8) and a plan to scale | EIC Accelerator, venture rounds |
Frequently asked questions
Do I need to live in Italy to apply for Smart&Start Italia?
No. Invitalia accepts teams of individuals who intend to set up an innovative startup in Italy even if they live abroad, as well as startup-visa holders. The company must then be set up in Italy, and foreign companies must open a seat there.
Are there 100% grants for startups in Italy?
Not among the national schemes we checked in October 2026. Grants cover a share of the programme, from 60% to 75% for the self-employment schemes, alongside capped vouchers. Be wary of anyone promising full funding without naming the official call.
Does Smart&Start Italia require collateral?
No. Invitalia states that the interest-free loan needs no guarantee. You must still spend and document the costs, and fund the 10% to 20% the loan does not cover.
Can a non-EU company apply for the EIC Accelerator?
The EIC says applicants from third countries may relocate their company to become eligible before the full application, and UK applicants can only apply for grant-only support. Check the current eligibility rules on the EIC site before you start.
How do I find business angels in Italy?
Usually through angel networks, accelerators, sector events and introductions from other founders. Arrive with a product someone uses and a clear deck; without traction the conversation tends to stop early.
Sources
- MIMIT, Smart&Start Italia (pagina aggiornata il 02/09/2026) (19 October 2026)
- Invitalia, Smart&Start Italia: a chi si rivolge (19 October 2026)
- Invitalia, ON - Oltre Nuove imprese a tasso zero (avviso del 30/06/2026) (19 October 2026)
- Invitalia, Autoimpiego Centro-Nord (19 October 2026)
- Invitalia, Resto al Sud 2.0 (19 October 2026)
- MIMIT, Fondo di garanzia per le PMI (pagina aggiornata il 21/09/2026) (19 October 2026)
- European Innovation Council, EIC Accelerator (19 October 2026)
- CDP Venture Capital (19 October 2026)
Figures and definitions checked on the dates shown.
