With Italy’s struggling history of encouraging start-ups and lacking significant venture capital investments, a new hope has emerged in the form of the Italian Founders Fund (IFF). Founded by Lorenzo Franzi, the IFF has raised over €50 million from business founders, entrepreneurs, and wealthy individuals who are eager to invest in the next generation of Italian start-ups. Franzi believes this marks a new chapter for Italy’s venture capital ecosystem, signaling a potential shift towards greater support for entrepreneurs in the country.
Despite the challenges facing Italy’s start-up scene, there have been some positive developments. Two Italian-headquartered unicorns, Scalapay and Satispay, achieved $1 billion valuations last year, attracting interest from global investors. Additionally, there has been an increase in interest from the business angel community, as well as private wealth now mobilizing to support Italian start-ups. Italy’s world-class academic institutions are also providing a strong foundation for the growth of start-ups, with a growing number of spin-out businesses emerging.
One of the key focuses of the IFF is to provide a structured approach to investing in Italian start-ups, offering not only financial backing but also support, advice, mentoring, and access to networks. By bringing together a group of successful founders as investors, the fund aims to help promising projects emerge and grow, ultimately generating value, change, and jobs. IFF is also actively seeking international investors to co-invest in Italy, further strengthening the country’s entrepreneurial ecosystem.
With the completion of its fundraising efforts, IFF is set to invest in around 25 companies over the next four years. The fund has already made its first two investments in Jet HR, a technology business focusing on human resources, and Glaut, a technology business utilizing artificial intelligence in market research. These investments are seen as crucial steps in supporting the growth of Italian start-ups and paving the way for future success.
Maro Ogliengo, founder and CEO of Jet HR, believes that IFF’s unique approach, backed by successful Italian founders and entrepreneur partners, sets it apart from other venture capital funds. Marco Morgese, CEO of KOINOS Capital, which houses IFF, notes that this founder-led fund model has been successful in other countries and has the potential to replicate that success in Italy. Ultimately, the establishment of IFF and the increasing support from both domestic and international investors could mark a turning point for Italy’s entrepreneurial ecosystem, allowing it to compete on a global scale and nurture the next generation of successful start-ups.
