Italy's Z_One Fund Raises $38M to Back AI and UrbanTech Startups

Jan de Vries · 2026-10-26

Italy's startup scene just got a serious boost. Z_One Fund, managed by Eureka! Venture, has announced a first close at more than €35 million (about $38 million), with a total fundraising target of €60 million ($65 million). That's real money aimed at pre-Seed and Seed-stage companies working on AI applications and urban technologies. 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 number of private investors. ### Why This Matters for European Startups "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," said Stefano Molino, Head of the Fondo Acceleratori at CDP Venture Capital. "It is with this vision that we chose to invest in Z_One Fund, the first investment of the Fondo Acceleratori 2, the cornerstone of our new acceleration strategy." That strategy combines investment with operational and mentorship support to help companies with go-to-market and business model validation. In plain English: it's not just cash—it's hands-on help. The team leading Z_One Fund brings serious experience. Luigi Capello, a pioneer of the Italian innovation ecosystem, leads 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. Collectively, they've made over 340 investments, achieved more than 25 exits, and managed over €80 million ($87 million). Notable deals include FitPrime, Robot.com, JetHR, Vikey, and 2Hire. ### Where the Money Goes The fund targets 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." 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 ($22 million) early-stage fund. To date, Eureka! Venture has raised over €190 million ($206 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 ($270k) and selective follow-on investments of up to €1 million ($1.08 million). It's also part of CDP Venture Capital's Rete Nazionale Acceleratori, meaning portfolio companies get access to a structured acceleration program delivered in partnership with Zest. For founders, this is a clear signal: Italy is serious about building a startup ecosystem that can compete on a European stage. With institutional capital willing to take early risks and a support network that goes beyond money, Z_One Fund could be the launchpad that many AI and UrbanTech startups have been waiting for.