18 reasons why a society should invest in Italy (as Euronext did)

Euronext, the leading pan-European exchange in the Eurozone, announced today the opening of new offices in Milan to assist Tech companies in developing their business on a greater scale through capital markets. This country was selected along with three others – Germany, Switzerland, and Spain – for its growth opportunities in the Tech sector.

In the underlying article that I wrote in Italian for EconomyUp, Stéphane Boujnah, Chairman of the Managing Board and CEO of Euronext, explains why Euronext has chosen Italy among others to expand in other European countries after Brexit. 

EURONEXT, ECCO PERCHé LA NOSTRA BORSA HI-TECH ARRIVA IN EUROPA

With more than 330 listed companies currently, operating in Technology, Media & Telecommunications, Cleantech and Life Sciences, representing a consolidated market capitalization of more than €50bn, Euronext has the largest number of Tech SMEs in Europe and stands as the world’s largest listing venue for Medtech and second largest for Biotech.

Having a presence in Italy would give to tech societies, and especially to biotech societies, the opportunity of going public in a European landscape. 

WHY ITALY?

“Italy is one of the first countries in the EU for its number of companies with hard innovation in processes and products. However, tech SMEs often face limited access and visibility amongst investors both in private rounds and capital market scenarios, who do not focus on tech firms. There are overall few real opportunities in financing for such companies on our domestic markets given the lack of domestic specialized investors, of liquidity, of coverage and of visibility. In this context, Euronext is committed to finance the real economy and create a virtuous circle for Italian Tech SMEs, as done for many years in France, The Netherlands, Portugal and Belgium” Giovanni Vecchio, Director – Italy Representative, declares. 

Euronext's investment in Italy takes place in a period when Italian economy is recovering.

In August 2017 Italy has posted its best annual economic growth figures since 2011 with its gross domestic product outdoing official forecasts to grow 1.5 percent on an annual basis. Improved domestic demand for industrial products and in the service sector drove the improvement in the second quarter, national statistics body ISTAT said. 

It is evident that an investor should catch this particular moment to expand in Italy. The economic recovery is the first reason why an entrepreneur should invest in my country. Are there other reasons to do it, apart from the economic recovery?

Stéphane Boujnah told EconomyUp (I'm summing up):

- Italy has an excellent engineering technology tradition

- Great Universities

- Scientific institutions

- Talented entrepreneurs

- Creativity

- A competitive nature

- A desire for internalization

- A strong expertise in Life Science

Moreover, in the last few years, Italy has approved significant reforms, and the financial sector has started to grow.

Recently my attention was caught by a question on Quora: Is it better living in The United States or Italy?

People gave a lot of answers. Here is a sum of them.

- The Italian life style

- Great food

- Wine

- Art

-The beauty of the countryside

- The safety: "Not having to look over your shoulder." 

- The variety: "If you travel only 2 hours away from Rome you are in another geographic and cultural area. Italy became a nation in 1861 and a republic just after world war II. In many ways, it is still a loose federation of 20 distinct regions". 

-The Italians: "Once they open up and trust you, the Italians are interesting people - writes on Quora Steve DeBerry, American living in Italy - Their resilience, adaptability, the way of thinking, and positive fatalism is unique. Sure, they complain a lot. Usually while enjoying themselves".

Apart from the comparison with the USA, I think these motivations could be useful and inspirational also for entrepreneurs who want to start a business in Italy. 

A COMPLETE PARADISE? NOT AT ALL

Foreign Entrepreneurs and societies wanting to operate in Italy will have a few problems with: 

- Taxes

- Bureaucracy

- Different rules in different Regions

- The partially underdeveloped South of Italy 

I will not elaborate, it would be too long, and it would be a topic of a new article. I can only say that the Italian government and the parliament should deal with these matters. In the meantime, entrepreneurs are coming to Italy. Euronext has just done it.