How is Tech Europe Foundation Powering the Continent’s Tech?
A non-profit foundation backed by Italian billionaire Andrea Pignataro is merging with the tech incubators of Milan’s leading universities to boost early-stage investment in the country.
The foundation – Tech Europe Foundation – has raised EUR120m (US$140m) and aims to increase investments to €1bn (US$1.2bn) by 2030.
The merger brings together Politecnico di Milano’s tech incubator, Bocconi University’s venture capital fund and entrepreneurial hub and more than 70 start-ups. It is backed by Fondo Strategico Italiano and the Milan Chamber of Commerce.
The foundation will focus on venture investments in AI, advanced materials, life sciences, robotics and microelectronics, a company statement said. It will also support research, provide grants and mentorship programs for students.
Strong financial support for Italy development efforts
Andrea is the founder of technology and financial services conglomerate ION Group, and is Italy’s second-richest person with an estimated net worth of about US$25bn, according to the Bloomberg Billionaires Index.
ION, which is sometimes known as the ‘Italian Bloomberg’, offers financial technology and data and has acquired major firms including Dealogic, Fidessa, and Acuris.
Andrea has expanded his interests into real estate and infrastructure, notably making a €2bn (US$2.3bn) investment in Greece's Ellinikon development project to create a technology and innovation centre.
He continues to invest in the digitisation of Italian finance, backing Azimut's spin-off of a new digital bank.
Tech Europe Foundation has already funded 85 scientists and 60 ventures. Specific focuses include 3D printing, semiconductor research and photonics/optics.
TEF is looking to harness a high density of start-up and tech skills in Milan to improve Italy’s competitiveness and establish the city as a premier European innovation centre.
However, Italy lags behind most European Union countries (including Estonia, Croatia and Spain) in venture capital spending as a share of gross domestic product, according to the European Commission’s Innovation Scoreboard 2025.
That said, there are many examples of Italy’s top businesses driving fintech and insurtech innovation including Intesa Sanpaolo, Generali and Eni.
Italy does have some way to go in catching up with European leaders in terms of fintech companies, and it is rated fourth behind Germany, the UK and France, with 393 fintech companies according to the latest data. This is equal to one fintech for every 150,636 citizens.
Within Italy, Milan does lead the way, with three of the biggest Italian fintechs located there.
The UK is seeing greater start-up investment as a whole
The UK is seeing more significant start-up investment. According to analysis by HSBC Innovation Banking, the UK's tech growth has been marked by unicorn start-ups and investments in the AI and fintech sectors.
Valuation of the innovation ecosystem of the UK stood at a collective US$1.2tn as of 2025, highlighting a robust 20% increase year-on-year.
The figures are the product of an analysis conducted by HSBC Innovation Banking UK alongside Dealroom.
The valuation signifies a striking ninefold amplification over the preceding decade.
Investment in UK fintech during the second half of 2025 was up 11% on the first half of the year.
Economic Secretary to the UK Treasury Lucy Rigby says: “UK fintech continues to show real strength and resilience, with an upsurge in investment in the second half of last year and the UK firmly established as Europe’s leading fintech hub.”