Venture capital in Italy : financing innovation (from Olivetti Group to nowadays)

The aim of this thesis is to analyze the development of venture capital in Italy from ‘80s to nowadays from both historical and financial points of view. The birth and the evolution of this important financial instrument in our country have been hindered and then slowed down by historical conditionings, economic interests, tax policies, social, cultural and political visions. This work can be divided into three parts; in the first, some classical definitions of venture capital are introduced and studied. This chapter focuses on models evidencing the factors which facilitate or obstruct this new way of funding innovation. The second chapter is focused on the applications of venture capital techniques in United States of America and Europe (in particular United Kingdom and Italy); a comparative analysis among the results in these countries is made. The third part concerns two case studies: the first one is about Corporate venture capital program managed by Olivetti Group, the European leader in the information technology industry in the 80’s; the second analyses the late ‘90’s and it shows the activity of Kiwi Funds, two venture capital investment companies focused on the following sectors: telecommunications, internet and new technologies. The reading key is E. Piol who has managed venture capital activities since 1980 on behalf of Olivetti and continues to be active in venture capital as Chairman of Pino Venture Partners S.r.l and Pino Partecipazioni S.p.A., advisor to the Kiwi funds. This work ends with a glossary containing terms aimed at the finance industry and the telecommunication sector. This glossary is by no means comprehensive, but it attempts to explain basic business terminology, especially relied to venture capital and private equity markets.