Specialization and Diversification in Venture Capital: Theoretical Foundations and Empirical Evidence from the Italian Market

This thesis examines the strategic dichotomy between vertical (specialist) and horizontal (generalist) Venture Capital funds, arguing that the two models are complementary rather than competitive within the Italian market. Chapter 1 outlines the theoretical foundations of Venture Capital, its role in correcting market failures, the investment cycle, and performance and risk management. Chapter 2 compares vertical and horizontal fund models through Modern Portfolio Theory and the Resource-Based View. Chapter 3 provides an exploratory quantitative analysis of 249 lead investor observations from Venture Capital Monitor reports for 2023–2025, comparing sector concentration, investment stage, syndication, and round size. Chapter 4 complements these findings through comparative case studies of Kairos SGR and Eatable Adventures, examining organizational architecture, deal flow, value-add, risk management, and exit dynamics. Findings suggest that specialists enter earlier and concentrate expertise, while generalists provide broader capital and support, with both models occupying distinct but mutually reinforcing positions in Italy’s venture capital ecosystem.