Mapping Milan Fintech
In early 2019, Endeavor Insight partnered with Fintech District, Endeavor Italy and BIP to assess the entrepreneurship ecosystem for financial technology companies in Milan. The purpose of the study was to provide a snapshot of the sector’s current state, evaluate the industry’s strengths and weaknesses, and enable decision makers to better understand and support local entrepreneurship in the sector.
The study concluded in the following key findings:
Decision makers in the private sector and the public sector alike should focus on helping companies reaching scale.
If decision makers wish to foster growth in the fintech sector, they need to dedicate resources to addressing the challenges that prevent founders from reaching scale
Fintech entrepreneurs identified access to capital, access to talent, and compliance with regulation as their top challenges in scaling their companies today.
Based on interviews with 64 fintech entrepreneurs in Milan, the following are the three major challenges that make it hard to scale a company in the fintech sector today:
Access to capital
Access to non-financial talent
Network Analysis points to challenges and opportunities in the Milan fintech entrepreneurship community with long lasting implications for the sector’s future potential.
There is an absence of productive mentorship and angel investment connections between fintech entrepreneurs in Milan
The fintech community has strong ties with the banking sector because of former employment
Entrepreneurial networks are the most influential actors in the entrepreneurship community and they can become a vehicle to transmit resource
Decision makers in the public sector and the private sector who wish to support fintech entrepreneurship in Milan need to focus on four key areas.
Channel resources to companies with a potential to scale
Foster relationships with international investors
Address the shortage of tech talent and non-financial managerial talent in the sector
Leverage entrepreneurship networks to foster angel investment and mentorship among entrepreneurs in the sector
The complete study is downloadable here.