Italy's Z_One Fund Just Raised $37M to Back AI and UrbanTech Startups

Jan de Vries · 2026-10-26

Italy's startup scene just got a major boost. Z_One Fund, managed by Eureka! Venture, has announced its first close at over €35 million (about $37 million), with a total target of €60 million ($63 million). That's a big deal for a country whose innovation ecosystem is often overshadowed by its European neighbors. ### Who's putting money in? The fund's investor base reads like a who's who of Italian institutional capital. CDP Venture Capital SGR committed through its newly launched Fondo Acceleratori 2. Other backers include Euronext Milan-listed Zest, Lazio Innova (via a parallel fund focused on the Lazio region), Fondazione Compagnia di San Paolo, and a handful of private investors. Stefano Molino, Head of the Fondo Acceleratori at CDP Venture Capital, explained the strategy: "The development of an increasingly mature innovation ecosystem comes from the ability to value specialised operators capable of supporting startups from the earliest stages of growth." In other words, they're betting on experienced managers who know how to nurture young companies. ### The team behind the fund Luigi Capello, a pioneer of the Italian innovation ecosystem, leads the fund alongside partner Giulio Montoli and junior partner Giulia Fazzini. Montoli has built his career in acceleration and pre-Seed investing, including managing one of the country's largest startup portfolios. Fazzini is one of the youngest women to hold a partner-level role at an Italian VC firm. Together, they bring experience from over 340 investments, more than 25 exits, and over €80 million ($84 million) under management. Their notable deals include FitPrime, Robot.com, JetHR, Vikey, and 2Hire. ### Where the money goes The fund targets pre-Seed and Seed stage startups in two focus areas: - **AI Applications:** Startups embedding artificial intelligence into corporate and public administration workflows, covering verticals from financial services and retail to digital security and new AI models. - **UrbanTech and Smart Cities:** Technologies transforming cities, including smart buildings, electric mobility, water and waste management, and the regeneration of public spaces. "Italian venture capital needs a financial supply chain to help high-potential startups grow," said Capello. "This requires institutional capital willing to invest from the very beginning and the ability to support founders in developing their business. With Z_One Fund we put to use the experience gained over years of investing and acceleration." He added: "We want to give more teams the opportunity to test themselves against the market and to progressively concentrate resources on the companies that show the greatest potential, in segments that open up important opportunities for a new generation of tech companies. Our ambition is to help them be born in Italy with a European outlook." ### The bigger picture Z_One Fund is managed by Eureka! Venture, an independent Milan-based asset management company founded in 2019 and supervised by the Bank of Italy and Consob. The firm focuses exclusively on DeepTech investments and recently launched Eureka! Fund II – Deep Tech Lazio, a €20 million ($21 million) early-stage fund. To date, Eureka! Venture has raised over €190 million ($200 million) across a multi-strategy platform spanning technology transfer, software, DeepTech, AI, UrbanTech, and SME-focused vehicles. The Z_One Fund aims to be the first institutional check for startups, with initial tickets up to €250k ($263k) and selective follow-on investments up to €1 million ($1.05 million). The fund is also part of CDP Venture Capital's Rete Nazionale Acceleratori, meaning portfolio companies get funding plus access to a structured acceleration program delivered in partnership with Zest. For U.S. investors and founders eyeing Europe, this is a signal that Italy's startup ecosystem is maturing. The combination of institutional backing, experienced managers, and a focus on deep tech could make Italy a more attractive destination for transatlantic collaboration.