Overall Description

Fondo Cresci al Sud (Grow in the South Fund) is an investment fund managed by Invitalia that supports the growth and competitiveness of SMEs in Southern Italy. Rather than providing grants or loans, the Fund invests directly in the equity capital of eligible SMEs, generally by acquiring minority shareholdings.

The Fund was established by Italian Budget Law No. 160 of 27 December 2019 with an initial allocation of €250 million from the Development and Cohesion Fund (FSC 2014–2020).

Funding Amount

• The Fund invests directly in the risk capital/equity of eligible SMEs, predominantly by acquiring minority shareholdings.
• The indicative investment amount per transaction is:
  • Minimum: approximately €1 million;
  • Maximum: approximately €10 million;
  • In all cases, each individual investment may not exceed 15% of the Fund's total allocation.
• The Fund was established with a total allocation of €250 million from the Development and Cohesion Fund (FSC 2014–2020).
• This is an equity investment, not a non-repayable grant. Invitalia becomes a shareholder in the beneficiary company, normally through a minority participation.

Submission Deadlines

• No fixed submissions deadline.
• The incentive is currently active, and applications may be submitted on a rolling basis until the available resources are exhausted.

Submission Conditions

• Companies interested in receiving an investment from the Fund must complete and submit the documentation provided by Invitalia, specifically:
  • Company presentation form (Scheda di presentazione dell'azienda);
  • Historical financial data presentation (Presentazione dati storici).
• These documents must be sent to the dedicated Fondo Cresci al Sud email address provided by Invitalia.
• Unlike a conventional grant call, this is therefore an investment-selection process. Invitalia assesses potential target companies and, where appropriate, invests in their equity and establishes a partnership with the ownership/management based on a shared development plan.

Eligible Types of Businesses

The Fund targets Small and Medium-sized Enterprises (SMEs). The main characteristics identified by Invitalia for target companies are:

• Fewer than 250 employees;
• Production value of at least €10 million;
• Annual turnover not exceeding €50 million, or total assets not exceeding €43 million;
• Registered and operational headquarters in one of the eight eligible Southern Italian regions;
• Sound economic and financial fundamentals, market positioning, competitive advantage and potential for organic and/or external growth.

Newly established companies may also be eligible where they result from the spin-off or aggregation of existing activities. In these cases, the spun-off or aggregated existing activities must have revenues from sales and services of at least €5 million.

Eligible Countries

• Italy – specifically Southern Italy (Mezzogiorno).
• Eligible companies must have both their registered office and operations in one of the following eight regions:
  • Abruzzo;
  • Basilicata;
  • Calabria;
  • Campania;
  • Molise;
  • Puglia (Apulia);
  • Sardinia;
  • Sicily.