In this interview, Giovanni Rizzo, partner at Indaco Venture Partners, shares his insights on the role of venture capital in Italy’s biotech sector. Below is a summary of the key points discussed, broken down into specific questions and timestamp references from the interview.

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1. Why is the biotech sector crucial for Italy?
(Timestamp: 00:09 – 01:36)

The biotech industry, especially in healthcare, is a key driver of innovation in the biomedical and pharmaceutical sectors. With projections showing the industry could grow 3-4 times its current size by 2030, Italy must focus on attracting investments and overcoming barriers that limit growth. These steps are essential to maintain competitiveness in Europe, attract foreign capital, and increase job creation in this high-impact sector.

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2. How did Giovanni Rizzo transition from research to venture capital?
(03:01 – 05:15)

Rizzo began his career as a biologist and researcher with a focus on oncology, virology, and microbiology. He worked in academia for about 10 years, then transitioned into industry, leading biological drug development teams. Noticing gaps in his business knowledge during his work with Intercept Pharmaceuticals, he pursued an MBA, which led him to the venture capital world. Rizzo’s journey from research to entrepreneurship and investments was driven by his passion for innovation and company creation.

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3. What is the role of venture capital in building biotech startups?
(07:08 – 08:25)

Rizzo highlights the importance of venture capital in supporting the early stages of biotech startups, particularly in turning promising ideas into patents and eventually products. Indaco Venture Partners is actively involved in company creation, helping form new startups in collaboration with academic institutions like the University of Padua. This process helps bridge the gap between academic research and commercial application.

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4. What are the challenges for biotech startups in Italy?
(09:02 – 13:08)

While Italy excels in academic research—ranking first in Europe in terms of publications per capita—there are significant challenges in translating research into products. The biggest hurdles include bureaucracy, limited infrastructure, and a need for more human capital with the entrepreneurial and managerial skills to drive innovation. The creation of a stronger innovation ecosystem, supported by pharmaceutical companies and improved clinical trial processes, is key to overcoming these barriers.

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5. How is Italy improving its technology transfer process?
(10:17 – 12:00)

Recent legislative changes, such as the end of the “professor privilege” in patent ownership, are helping to improve the technology transfer process in Italy. This change, along with initiatives to create a more effective Technology Transfer Office (TTO), will foster better collaboration between researchers and industry, helping to accelerate the **commercialization** of scientific discoveries.

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6. What role does government funding play in biotech growth?
(13:08 – 15:37)

Government initiatives, such as the PNRR (Italy’s Recovery and Resilience Plan), and funding from institutions like CDP Venture Capital and the European Investment Fund, are helping to drive growth in biotech. However, Rizzo believes Italy still needs to invest more in infrastructure and create tax incentives similar to those in countries like France, where startups benefit from tax credits that turn into cash for reinvestment.

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7. Can researchers be entrepreneurs?

(16:19 – 17:35)

While researchers can become entrepreneurs, Rizzo emphasizes that it’s not necessary for every researcher to follow this path. He suggests that researchers focus on their strengths in science, while entrepreneurs with the right skills should handle business development. Collaboration between these two groups is essential to ensure the success of biotech startups.

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8. What does the future look like for biotech in Italy?
(17:35 – 18:51)

Rizzo is optimistic about the future of biotech in Italy, pointing to the increase in foreign investments and co-investment partnerships with major international funds like Novo and Versant Ventures. With more capital available and growing collaboration, Italy is poised for a biotech boom that could significantly enhance the country’s role in global innovation.

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