Erik Lumer decided to launch his new social network, CircleMe, from Italy — a country better known for artisanal furniture and eyewear makers than technology startups — in part because initial costs were cheaper and it was his home.

A French-American entrepreneur with startup experience, Lumer secured Italian venture capital and found a core group of tech experts at wages lower than he could expect to pay in technology centers.

But as the number of users grows and the business seeks to expand, Lumer needs more capital than Italian investors may be willing to bet. In the end, he says, that could mean emigrating to the bigger stage of Silicon Valley.

To read the full, original article click on this link: Italy struggles to foster startups culture - CBS News